(Washington, DC) – If you are one of the millions of people who purchases airplane tickets online or buys items through online sites like eBay or Amazon.com, you might have to start paying sales taxes on your purchases.
“U.S. Senator Mike Enzi, R-Wyo., introduced legislation [on May 22] that would level the playing field for all in-store, catalog and online retailers so each has the same sales tax responsibilities,” states Senator Enzi’s website.
While Enzi insists the bill “would not increase taxes,” the Sales Tax Fairness and Simplification Act would open the door for states to charge sales tax on Internet sales. In contrast to his statement, a recent C-Net article states that Enzi warned that other taxes may zoom upward if his “mandatory sales tax collection” bill isn’t passed.
“Are we implicitly blessing a situation where states are forced to raise other taxes, such as income or property taxes, to offset the growing loss of sales tax revenue?” Enzi is reported to have said.
Enzi’s arguments about leveling the playing field have several fundamental flaws. To begin, nothing prevents brick-and-mortar shops from maintaining online presences — where generally no sales taxes would apply. An alternate solution, available to the states, is to follow the lead of Alaska, Delaware, Montana, New Hampshire and Oregon by eliminating the sales tax for brick-and-mortar operations. Instead, Enzi wishes to stifle a hundred billion dollar a year and rapidly growing sector of the American economy. The most obvious flaw is that government, at all levels, could concentrate on reducing spending as opposed to increasing taxes.
“This is yet another GOP tax increase to help pay for the Republican addiction to massive government spending,” said Libertarian Party Political Director Stephen Gordon, whose efforts helped kill a major Republican tax increase proposal in Alabama. “One would think that the Republicans, following the 2006 election results, would have learned to keep big government programs off the table.”
Like most Americans, the Libertarian Party opposes the ever increasing level of government spending. Like most Americans, the Libertarian Party opposes the taxation of Internet transactions at a local, state and federal level. Unlike the Republican and Democratic parties, the Libertarian Party promotes smaller government, lower taxes and more freedom.
Tax and Spend Republicans