Internet Retailing Under the Marketplace Fairness Act

For far too long, the American people have allowed their lawmakers to think they can tax just about anything. One of the more presumptuous taxes that lawmakers impose on us is the so-called "use tax," which works in tandem with the sales tax. Basically, the use tax is a sales tax states levy on out-of-state purchases. The responsibility for paying the use tax is laid upon the individual, not the retailer. The big snag with the use tax is that in the 45 states that have it, only about 1.6 percent of taxpayers actually pay it; it's fairly unenforceable and compliance is effectively optional. To remedy this, some have been pushing for a federal law that would allow states to force Internet and catalog retailers in other states to collect and remit sales taxes for them. So on May 6, the U.S. Senate passed the Marketplace Fairness Act (MFA). This would be is a lousy law, and the House should roundly reject it. The main reason to reject the MFA is the U.S. Constitution. On May 9 at U.S....(Read Full Article)

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