Think about it – think about one of the main tenets of the United States Constitution – and you can see that Amazon and a few other large online merchants are attempting to change one of the founding principles of our country for their own (commercial) gain.
Lets say I have an online store domiciled in Delaware (where there is no sales tax, by the way) and I make and sell products across the country (and world) from my Delaware location. I pay local taxes, state income, corporate, gross receipts, etc. so I can enjoy the public services in Delaware to which I am accustomed – such as fire and police protection, roads, schools, and other public infrastructure items that produce a nice quality of life.
What the Marketplace Fairness Act (MFA) will force me to do is collect and remit sales taxes to the 9000+ different taxing divisions and subdivisions in the 45 state where a Sales and Use Tax stature exists. Will I be the one paying the tax? Well, no – and that’s how they get around the Taxation Without Representation issue. I am not a detail-oriented person when it comes to paperwork. I pay a CPA and Accounting firm some big bucks to take care of the corporate and tax liabilities which I already have. The CPS services are billed at $250 per hour and the accounting services about half that. So how much do you think it will cost me in additional overhead to collect, maintain, remit and have “paperwork” done for every tax jurisdiction across these United States if I happen to make a sale there. Oh – and if I don’t make a sale there – will they let me off the hook and NOT have to submit a form? Ha! Rhetorical question for sure.
In effect I will be the “tax collector” for 45 states and their taxing subdivisions and be expected to do this for free. Gimme a break. This M-F Act will put a very large burden on every online merchant who manages to sell at least a million $ a year and will cost “us” a bundle. We will be paying, out of our pockets, to be the “tax man” for states where we do not live or work – and have no say in the matter – no representation. Hence the phrase Taxation Without Representation!
So, just “why” is Amazon, the behemoth in online marketing, pushing this new law? You can read that perspective from the “respected” (heh) Forbes, read The Real Reason Amazon Flip-Flopped on Internet Sales Taxes.