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There's Nothing Fair About the Marketplace Fairness Act

Sandy235 Wrote: Apr 25, 2013 12:22 PM
Once upon a time, the city of Chicago imposed an additional sales tax on the purchase of automobiles. When they went to the cities and towns surrounding Chicago and demanded that they collect the Chicago tax on cars sold to Chicago citizens, well to put it politely the cities and towns said no. Actually they said how are you going to make us? Collect it yourself. So Chicago demanded that the dealers report to Chicago about the cars sold to Chicago citizens, and again they were told no way. Eventually Chicago got the message that they had no power over non-citizens.

IF TRUTH-IN-LABELING rules applied to Congress, the proposed law giving states the power to collect sales tax from out-of-state online retailers would be named the Marketplace Unfairness Act.

Sponsored by Senator Mike Enzi, a Wyoming Republican, and fast-tracked to the Senate floor this week, the legislation would strip away protections that have been in place for decades, unleashing tax-hungry states on merchants they aren't answerable to and tilting the playing field against small Internet retailers.

Under existing law, any state can require businesses within its borders to collect sales taxes from their customers. That applies to shops on Main...