TaxMan

The Taxman Doth Protest Too Much

It’s a common refrain that those who protest too much might have much to hide.  Wednesday’s introduction of the “Marketplace Equity Act” (MEA) is a prime example of this behavior.  Just like the  Mainstreet Fairness Act before it, the MEA’s name has little to do with its true implications.

At a breathless Capitol Hill press conference, advocates for a new Internet sales tax regime exclaimed the benefits that an ill-defined, expansive and costly regulatory system would have for small businesses.

Not surprisingly, Walmart – a key advocate for online sales taxes and a significant constituent for bill sponsor Rep. Steve Womack (R – Ark.) – ceded the stage to a handful of small business owners who spoke admirably about the creation of a pseudo IRS. Read more

mixedbag

California Stays the Decimation of California Affiliates

Like all stays of harm, this past week in California was a mixed-bag for California’s small “affiliate advertisers” (websites who host advertisements on their site on behalf of retailers): you breath a sigh of relief but are quickly reminded the delay is temporary.  For California affiliate advertisers, this came in the form of a one-year delay in forcing out-of-state small businesses to collect and remit taxes to California if their only physical presence is through affiliate advertisers.

So what happened and why is this a mixed-bag? Read more

iawful logo building texture

iAWFUL: the 10 Most Awful Laws for the Internet

Today we published our September 2011 “iAWFUL” list of bad Internet laws.  The worst offenders are new burdens on small businesses using the Internet, plus a Puerto Rico bill restricting how 17-year-olds can use social networking.

Our Internet Advocates’ Watchlist For Ugly Laws (yep, iAWFUL is an acronym) is the 10 items of state and federal legislation that pose the greatest threat to the Internet and e-commerce. Read more

sneakingfinal

Odd Timing to Promote ‘Fairness’

Youu can tell a lot about whether a lawmaker is proud of a bill by watching how and when they introduce it. If you’re at a big press conference in the morning, early in the week, with lots of reporters around, you can be pretty sure the lawmaker behind the bill feels pretty good about it.

So what does it say about the so called “Main Street Fairness Act” that Sen. Richard Durbin (D-IL) and Rep. John Conyers (D-MI) chose to slip the measure into the legislative agenda on a Friday afternoon, at the end of July, right in the middle of an apocalyptic congressional battle over the debt ceiling?   Read more

Hunting2

Maryland’s Attempt To Hunt New Tax Revenue Without Shooting Itself In The Foot

Basic hunting safety has two rules:

1.Know how to handle a gun without hurting yourself, and

2. Ready, Aim, then Fire.

Same rules ought to apply when states go hunting for new tax revenue. Lawmakers first need to understand where potential tax revenue is hiding and how to get it in their sights. Then they create legislation that minimizes collection costs. Read more

PlayerTrade

California, You Don’t Trade Your Star Player for A Couple of Bucks

We see it throughout sports.  The “star player” getting traded for some quick fixes to the team.  But it’s that star player that makes people want to come play – think Kobe Bryant for the Lakers, or Drew Brees for the Saints.  People want to play with the star players.  And the star players are the ones that bring fans to the games and sell the jerseys.

Read more

CalCap

Small Sellers Rally to Oppose California’s Affiliate Tax Bill

Over 5,000 small sellers have joined together to oppose California’s affiliate nexus bill, AB 153.

This legislation attempts to force out-of-state sellers to collect California taxes on sales to state residents. Presently, the US Supreme Court regards state sales tax systems as unreasonable burdens on interstate commerce, so sellers only have to collect taxes for states where they have a physical presence.

Read more