Saturday, December 20, 2014

Michigan Tries to Collect Sales Taxes on Out-of-State Sales

My state, Michigan is pushing hard to collect sales taxes for all internet sales by Michigan residents. Well, senators and representatives, now we know for whom you really work.

First, the argument about a fair, equal playing field for storefront businesses is a specious and biased. When items are purchased on-line there are significant shipping charges attached (creates shipping jobs). That makes internet prices relatively equal to storefront prices, even though storefront businesses pay very little for shipping on a per item basis. 

Secondly, if I buy something out of state, the transaction occurs where the money is exchanged for the product (according to the Generally Accepted Accounting Principles (GAAP). Since the money is received and product shipped out of state, no state taxes are due except perhaps the state housing the distribution center (an incentive for states to attract distribution centers).

Third, if I purchase anything out of state what right does my state have to levy a tax on it? Yes, I am familiar withe the "use tax" concept and it should go the way of laws protecting slavery.

Finally, I buy locally first when I can, but guess what? Retailers stock their shelves with the merchandise that brings the greatest profit, not the greatest customer satisfaction. I like to see, touch, and smell my merchandise when possible but when the choices are so limited, I might buy on-line. 

Instead of helping consumers find ways to stretch their dollars, and have better choices, I view congressional support for the Marketplace Fairness Act (S.743) as working against my interests as a citizen and for the interests of the business lobby. In the end, I can do very little. After all, those with the guns (power to arrest) are able to rob from the citizens with impunity.

Royal Dun

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