Saturday, January 21, 2012

Marketplace Fairness Act

Indiana has become the 4th state to negotiate with online retailer Amazon to collect state sales tax on internet purchases. Rather than change policy based on the technological advances our society enjoys and changing, politicians can't seem to think outside the box to come up with new solutions to the consequences of technological leaps.

The complaint is that brick and mortar businesses have to collect taxes. Politicians want "fairness" by forcing online retailers to do the same thing. Instead of coming up with other sources of tax dollars the States like their sales taxes and want someone else to collect the taxes for them. To me this is what the unions do when they force employers to take out union dues for the union. Rather than have the Union employees pay their dues directly to the union, the union would rather have someone else be the bad guy in the equation. States want the same thing, merchants collect the taxes due for the State. This line of thought needs to change.

Internet sales should not be taxed. To make it fair to the brick and mortar businesses why not change the way taxes are collected on goods and services from the business collecting and paying to the state collecting? Why not increase income taxes? States know how much they require and statistically how much people currently spend out of their paychecks on taxable goods and services. Why not just set an amount of income taxes that would fill this gap? There is a reason why people will go to great lengths to avoid the tax liability in various states. People living close to the Delaware border will travel the short distance and purchase goods and services because Delaware charges no sales taxes. Get rid of the sales taxes all together and find an appropriate place to increase taxes to get the revenue back into State cofers. The answer is not to bring the future backwards into the way it has always been dome. The answer is to keep up with the times and move towards a one tax or two tax system where people can really see how much of their income really goes to keep the tax man happy.

States and the Federal government need to get rid of the hidden taxes and the taxes that are collected by outside sources and go directly to the payee and let them know exactly how much really goes to pay for the government leviathan.

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