Here a Tax, There a Tax, Internet-a-Tax-Tax!!!

During the summer, cockroaches think you're not watching them.

So they come up with this:

Congressional Republicans led by Senator Mike Enzi of Wyoming have begun negotiating behind closed doors with liberals like Senator Dick Durbin of Illinois to raise Americans’ taxes. They introduced their internet tax as an amendment to a Senate small business bill, but that bill stalled. Now they are confident they can sneak the internet tax into a lame duck session of Congress, just in time for Christmas shopping.

It will be the shoehorn for a national sales tax (although this is only the first step.)

...The nation has thus far successfully shielded the internet from Washington taxation and regulation for decades, and the Marketplace Fairness Act would break the floodgates open. Even more troubling, the Marketplace Fairness Act establishes a pretty solid precedent that the federal government can step in to regulate state tax policy. After all, this legislation attempts to exert federal regulatory power over state internet tax policy with state complicity.

...But here’s the other troubling thing. The Marketplace Fairness Act, for the first time, establishes a national sales tax. It does so by hiding behind the states. They told us the individual mandate wasn’t a federal tax either.

Is it really "fair"?  Hell, no!!

...Some [states or municipalities], for example, don’t tax baked goods, but do tax candies, even if made in a bakery. So your cake is not taxed, but if you buy fudge at the bakery it is. And it’s not just states, there are over 7,500 different local tax systems, many with special tax holidays or exemptions for different products. Trying to move these varied tax systems to the internet would drive up the burdens of businesses online by forcing compliance with the various taxing schemes of 50 states.

That actually puts a heavier burden on online vendors than brick & mortar local vendors, who only have to comply with the taxes of the state they reside in. Then there are the compliance costs. How does a candy company in Georgia that sells fudge to someone living in Iowa handle a tax dispute with Iowa tax authorities?

And of course, it's really about MORE MONEY for the States who can't control their spending.