THEY ARE COMING FOR YOUR MONEY

The shakedown will continue until you have nothing left. The only retail growth area in the U.S. has been online. Now Congress and the clueless state politicians want to drive thousands of small businesses into bankruptcy while handing you a 5% to 10% price increase on everything you buy. Once sales taxes are allowed for on-line sales, the bricks and mortar retailers will be free to raise prices. But don’t worry. The BLS won’t consider this a price increase because it is just a tax. Presto!!! – no inflation.

The Online Nightmare Sales Tax Bill that is Sitting in the Senate


Never trust anyone in Congress. Congressmen are all about aligning themselves with certain power centers, creating new power centers, but always about expanding government in one direction or another. That said, a congressman may, not very often, but from time-to-time find himself on the side of truth, as he tries to maneuver some power center.
Senator Jim DeMint has found himself on the side of truth when it comes to the online taxes. He warns in WSJ:

The Marketplace Fairness Act recently introduced in the Senate would require online retailers to collect and pay sales taxes to states where they have no physical presence or democratic recourse. Overstock.com, eBay and the like could have to pay sales taxes to any state from which an Internet user placed an order, even if the company’s headquarters, warehouses and sales staff are located entirely in other states.

Such online sales tax proposals are taxation without representation. The proposed federal law tells businesses that there is no escape from the clutches of tax-hungry politicians. That concept is antithetical to our federalist system, which promotes competition among our states for the best economic policies…

The Supreme Court ruled (in Quill Corp. v. North Dakota, 1992) that retailers can be required to collect sales taxes only in states where they have a physical presence. The proposal before Congress, however, would give a federal blessing for states to chase revenues far outside their borders.

Consider the absurdity of such a law. When a customer buys a product in a store, does the cashier ask for the customer’s home address? Of course not. The store simply charges the state and local sales taxes applicable for its physical location, no questions asked.

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