With fiscally liberal “Republicans” like U.S. Sen. Lindsey Graham (RINO-S.C.) leading the way, the U.S. Senate overwhelmingly approved a massive new sales tax on internet purchases this week.
The legislation – oxymoronically dubbed the “Marketplace Fairness Act” – passed on a 69-27 vote.
Joining Graham in supporting the new tax – which would suck an estimated $23 billion out of the economy each year – were numerous fellow “Republicans in Name Only” including Lamar Alexander, Saxby Chambliss and John McCain.
Opposing it? Free market fiscal conservatives like U.S. Senators Ted Cruz (R-Texas), Jeff Flake (R-Arizona) and Rand Paul (R-Kentucky). Also South Carolina’s newly elected Tim Scott voted against the tax hike.
In addition to depriving the struggling American economy of vital oxygen, this law imposes onerous new reporting requirements on companies that do more than $1 million worth of business a year. In fact it forces them to follow a labyrinthine maze of state and local sales taxes – charging residents different costs based on their geographic location.
It also forces businesses in states that currently do not collect a sales tax to start assessing one.
“Compliance would be extraordinarily onerous and expensive, with upwards of 9,600 taxing jurisdictions in the country among the 45 states with sales taxes,” a recent opinion piece in U.S. News and World Report noted. “Under the legislation, states would have to provide software with the appropriate tax rates, but that still leaves the burden on retailers of incorporating the information and actually collecting the tax, a burden that will hit smaller retailers disproportionately hard.”
The vote comes as a new national poll from Quinnipiac University found 56 percent of Americans opposed to internet taxation (compared to 37 percent who support it).
So yeah … way to do the “people’s business.” And way to stimulate that “recovery.”