Taxes File Containing Taxation Reports And Documents

Utah Citizens: Internet Sales Tax System Works Fine, Don’t Mess With It

Sixty-seven percent said that imposing sales tax obligations on businesses that have no physical presence in the state would amount to a statewide sales increase.

Sixty-seven percent of Utahns said the “issue has largely solved itself and requiring small merchants to collect and send taxes to 46 states is overly burdensome.” Only 16 percent said there “should be federal or state laws that require merchants large and small to collect and pay taxes to tax collection agencies in nearly every state.”

Utahns support the current online sales tax system. An overwhelming 78 percent said that the current system is “fine, I like it as it is.” Only 8 percent said “it needs to change. More purchases should be taxed.”

Read the Polling at NetChoice.org/UtahTaxPoll

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Why Are We Importing Europe’s Broken Internet Sales Tax System?

As Congress weighs Internet sales tax proposals, it should look to Europe’s unpleasant experience with the Value Added Tax (VAT) system for guidance on what not to do.

The European Commission (EC) is calling for major reform of its current tax collection system for its 28 member countries because the VAT has proven harmful to retailers and is slowing cross-border purchases. Now the EC is advocating for a tax structure based not on where the buyer is (as is currently the case), but on where the seller is, helping to create what it calls a “Single Digital Market.”

Read more at Forbes.com

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Two bills that should be on everyone’s “Don’t Pass” list

With Congress back from the August recess, attention will quickly shift to the “Must Pass” legislation that has to be approved by the end of the year to avoid calamity.  But there are two Internet sales tax bills that should be on everyone’s “Don’t Pass” list, because if either is slipped into moving legislation, it would be a calamity for America’s small- and medium-sized businesses.

We’re talking about the fatally flawed Marketplace Fairness Act (MFA) and the Remote Transaction Parity Act (RTPA), which was supposed to fix the problems with MFA, but actually made a bad bill even worse.

MFA would force America’s online and catalog sellers to comply with the sales tax laws of 10,000 local jurisdictions in our nation, creating costly administrative and compliance burden on small- and medium-sized businesses that can scarcely afford it.  It would also expose every single American business to new risks of government audits from any of the 46 states that impose a sales tax.

READ MORE at The Hill

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Chaffetz Internet Sales Tax Bill Is Too Costly and Complex

Congress is looking for a sensible solution to the dilemma over how to collect Internet Sales Tax in a fair and reasonable way.  But the fatally flawed Remote Transactions Parity Act (RTPA) introduced in June by Rep. Jason Chaffetz, a Utah Republican, is exactly the wrong way to do it.

This legislation would impose large costs on America’s small businesses, is amazingly complex to administer, and creates uncertainty and fear of intrusive government audits from 46 different state tax departments across the nation.  Congress should find a better way – one that doesn’t favor big box retailers at the expense of small businesses in any corner of the country. Here’s why:

READ MORE at CFO

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Times Union – New York Lawmakers OK Budget Bill But Reject Gov. Cuomo’s Tax Proposals

Times Union – New York Lawmakers OK Budget Bill But Reject Gov. Cuomo’s Tax Proposals (NetChoice Oped)

As the song says about New York, “If I can make it there, I’ll make it anywhere.” But if the state budget includes a new sales tax mandate, online marketplaces may not make it in New York – or anywhere else, for that matter.

Online marketplaces such as Amazon and eBay enable small producers and specialty retailers to reach customers across the country who might never visit their factories or stores. From handmade crafts to custom clothing to specialty tools, online marketplaces are empowering small businesses and meeting consumer demand.

READ MORE

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The Marketplace Fairness Act: Too Close A Call

As you break out your credit cards this holiday season, you might not know how close we came to a law that would have put Internet retailers and their customers at a permanent disadvantage. Luckily, two Congressional leaders protected us from a radical new tax regime for online purchases.

Prior to the November elections, supporters of the so-called Marketplace Fairness Act (MFA) declared their intent to leverage the unique pressures and chaos of the lame duck session to ram through their increasingly unpopular Internet tax bill.

READ MORE at Forbes

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WSJ – Wednesday Is Tax-the-Internet Day

The Wall Street Journal editorial page has a great article about tax advocates’ last minute push to pass their online sales tax legislation (MFA).  We’ve talked about MFA’s problems before.  The WSJ editorial warns about the taxpayer funded National Conference of State Legislatures’s plot to storm the hill this Wednesday to demand higher tax burdens.

Read the article here.