The media isn’t talking much about this issue. So what information does trickle out to the public is being put forth by politicians on both sides of the aisle, and much of it is frighteningly inaccurate!
Even some so-called conservative politicians and pundits are endorsing this massive, new, and oppressive tax. A “Hot Air” columnist recently said this new tax is “already part of the fabric of extant society” and should be implemented.
So let me set the record straight …
The LIE — This is not a tax increase.
The FACTS — Taxes will go up $382.5 Billion.
Grassfire projects that the Internet Sales Tax mandate will result in a net INCREASE in taxes paid by the American people of $382.5 billion over the next 10 years. This is a conservative estimate based on widely published projections that Internet retail sales will increase 10% compounded annually.
I expect the real number to be much higher as state governments try to take advantage of this new pot of tax revenue and expand the definition of products and services subject to the sales tax. And this tax increase is permanent and forever — if we don’t stand right now.
The LIE — This bill is fair for local merchants.
The FACTS — This bill punishes Internet merchants.
This bill greatly disadvantages Internet businesses (the lifeblood of the growth of our economy) by requiring them to track and report more than 9,600 sales and use taxes! An Internet business like Grassfire will be required to know, track, report and pay every single tax! This will create a reporting nightmare worse than ObamaCare.
I won’t be surprised if the complications from this new tax mandate causes the federal government to set up an Internet sales tax “clearinghouse” — a convenient way for the feds to get their hands on this massive influx of new sales tax money.
The LIE — It’s fair for online retailers to have to pay.
The FACTS — Online merchants should NOT pay out-of-state taxes for good reasons.
This may be the worst lie of all, and I didn’t even grasp it until one of my associates made the point to me yesterday. Taxes should always be associated with some service the government provides. Sadly, in our modern tax-and-spend culture, we have lost any and all association between taxes and actual government services those taxes fund.
An Internet merchant in Iowa receives virtually NO services from, for example, the Virginia government and SHOULD NOT be forced to collect and pay Virginia sales tax. Our founding fathers would likely have called this taxation without representation.
The LIE — Most consumers won’t feel this tax.
The FACTS — This new Internet Sales Tax mandate will hit the middle class the hardest.
This bill is squarely aimed at the middle class: home computer owners with high-speed Internet and “disposable” income who shop online. The middle class will “pay the freight” with each and every online purchase.
+ + Key Senate Vote On Monday
Senate Majority leader Harry Reid has promised to push for a vote on this new Internet Sales Tax mandate as soon as Monday (May 6). Grassfire has launched an aggressive grassroots initiative challenging Reid’s Internet revenue raid and will gather petitions Monday morning for delivery to key Senate leaders prior to the vote.
Go here to have your petition hand-delivered: