A Letter to Congressman Joe Kennedy

April 16, 2013

Congressman Joe Kennedy
1218 Longworth House Office Building
Washington, DC 20515

To whom it may concern,
On March 22, the Senate passed a non binding agreement, the Marketplace Fairness Act, as part of the budget proposal. The house has a similar proposal under the same name presented by Reps. Steve Womack (R-Ark.) and Jackie Speier (D-Calif.).

This law would allow states to charge Sales and Use Tax and make internet dealers the tax collectors for the jurisdictions of their customers. This would make dealers responsible to 9600 different sales tax regions based on State, County and City tax. This would make online retailing disproportionally difficult above their brick and mortar counterparts. We believe there is a better way.

It is a Sales Tax not a Buyers’ Tax.
We believe there is historic and procedural precedent to abolish the Use tax and honor sales tax as it was supposed to be collected, as a sale on an item from a business. Just as a customer visits a Brick and Mortar store, a customer visits a web site. Just as a customer pays the sales tax of that store, the customer should pay the sales tax for the web site’s location (or from where the items are shipped).

  1. Local communities get the sales tax support they need to provide Police, Fire Protection, Roads, etc. for the local business who created the sale.
  2. The Customer can choose which sites she wants to visit and if she is unwilling to pay the sales tax associated with that site’s location. She can vote with her feet and choose another site.
  3. The dealer’s have only one set of Sales Tax paperwork to complete which they are already required to do for anything sold in state. Even if the software to do multiple Jurisdictions was free (and it is not), seller’s would still need to monitor and prepare tax papers for areas where they were not represented at a cost to their business not shared by Brick and Mortar stores.
  4. No lower limits for dealers to collect are required since this is a standard tax policy today.
  5. The dealer is represented in the community that he supports by collecting the sales tax.
  6. The Commerce Clause is not changed because the sale is taking place in the Seller’s state.

Everyone gets what they have stated they want and no new taxes have been created. We have just eliminated a failed tax system that did not represent the people it was responsible to. If EVERYONE collected sales tax for their community where they created the sale, local businesses would be protected but still required to compete. I have placed this online at TheInternetSalesTaxSolution.com.

We have an opportunity to make a correction that will speed up business for everyone. I am asking for help in getting the right questions answered. Please help me get this in front of people who will ask the questions that will help keep online sales going.

Sincerely,
Don Hicks