The marketplace fairness act, has passed the Senate. This act will compel any business selling items on the Internet to collect sales tax in all 50 states. The National Retail Federation is pushing this legislation, it does not like the downward pressure placed on sales prices from the Internet. They have devised a way of driving these prices up by at least the amount of sales tax that in their taxing jurisdictions. This Bills complications, and will drive prices up much more than just the cost of the sales tax. And by compelling all sellers to collect sales tax it will allow your local brick-and-mortar stores to immediately raise prices on all their goods and services.
The House of Representatives is now considering this Bill. Unlike the Senate the house intends to have a full range of hearings to try to refine this Bill , the Senate in its lack of wisdom passed the bill as written by the representatives of the National Retail Federation. That Senate bill as written will place huge burdens on all Internet businesses. What are these burdens do you ask?
First, it is a threat to privacy as businesses will have to send their private information to all the proper taxing authorities. The same taxing authorities have shown a problem in the past with being able to keep private information contained. Secondly, this bill opens the door for many more government interventions and controls on the Internet and allows taxing authorities new gateways to collect revenues at the cost of people out of their jurisdiction. Lastly, there are 9000 ( + or minus) taxing authorities and jurisdictions across all 50 states. All businesses would be compelled to deal with those jurisdictions and settle any disputes in out-of-state courts putting those businesses at a great disadvantage.
It is obvious that the Bill as written need some serious revisions. If passed in its present form, this Bill will affect you, not just those rascally out-of-state Internet businesses. And if you want to keep prices in check do yourself a great favor, contact your Congressman and tell them to simplify and correct this Bill.