the Marketplace Fairness Act is unfair
This is not mine.
so-called Marketplace Fairness Act was designed to cure a problem that
doesn’t exist. Currently, states and municipalities that levy a sales
tax on their inhabitants can force those merchants residing within their
borders to collect their taxes. However, they cannot touch merchants
outside their jurisdictions. Naturally, locals avoid these levies by
using the internet to buy their stuff sales tax free, leaving the tax
collectors fuming and fussing. It should not be considered a problem
when tax collectors are unhappy.
The Marketplace Fairness Act
would require businesses grossing more than a million dollars a year to
start collecting taxes for all these states and municipalities for free.
In other words, it takes small businesses and forces them to spend
their time and money doing the dirty work of hundreds of different state
and municipal entities. How could that possibly go wrong? The high tax
states and cities love the idea. It gets them a nationwide army of tax
collectors working for free to rake in more money which these entities
can then squander.
Who else wants it? Brick-and-mortar
retailers in high tax localities want it too. Anything that makes
internet shopping less attractive – like jacking up the price of web
buying with sales taxes – is a-ok with them.
But why do the
big companies love the idea? This law is just another exercise in
manipulating the government to tilt the playing field toward the
behemoths. Big corporations can easily hire the extra staff and pay the
additional costs of doing the sales tax collecting – but it’s a huge
deal to their competition. The little companies that the internet made
possible can’t just hire a bunch of folks to do all the uncompensated
work associated with processing the paperwork for the benefit of
Small businesses only have a handful of
employees — they don’t have economies of scale. They spend most of
their time trying to ensure they have a profit at all.
small businesses do free collection work for faraway government entities
makes them even smaller. The giant companies don’t want free
enterprise. They want regulations, regulations they can easily comply
with (by passing the costs on to us) but which kill their competition.
And who is the competition? The victims of this Act will be the kind of
small businesses that people boycott Walmart to “support.”
who else gets hurt? Well, ordinary American families who like to shop
via their laptops. They get hit with a giant tax increase, which is all
that the Marketplace Fairness Act is. The Senate passed it today.
President Obama says he supports it. Hopefully, the House of
Representatives says no and protects small business and the average
For free…no, they would be like any other company that gets to keep a percentage of the tax they collect.
Also, I pay use tax every year on my Michigan Tax Return for purchases my family makes on the Internet. Everyone should also. But they don’t, instead they see it as a discount.
The current Michigan law states that use tax is do if you buy anything and have not pay sales tax somewhere. It’s pretty simple, but people always try to find ways to skirt the law.
Buying stuff on the Internet and not paying sales or use tax of 6% is against Michigan law.
Again, as I stated before, it is not a new tax. It is a bill that closes a loop hole in the tax law and we should all be in favor of closing ALL loop holes and not just the ones that don’t affect us.
I already pay my tax for Internet purchases, because I owe it. Now it is everybody else’s turn. If people would be ethical and pay what they owe then we wouldn’t need “An army of tax collectors working for “free””.
Taxes are never fair.
You have 3 options of remitting the sales tax collected on behalf of the State of Michigan. They are:
1) If you remit your sales tax by the 12th of the month you get a discount in the amount of:
Your sales tax collected × .6667 (the discount is only on the original 4%) × .0075
2) If you remit your sales tax by the due date on the 20th you get a discount in the amount of:
Your sales tax collected ×.6667 × .005
This is to offset some of the cost of collecting the sales tax for the State of Michigan
3) If you pay late then no discount.
Here is a website.
I don’t believe I like the “use tax” either. I don’t care for sales tax. I don’t like income tax. I like taxes in general but our methods of taxation are far too invasive.