- Sophisticated software won't completely erase compliance costs and burdens associated with nearly 10,000 taxing jurisdictions around the nation; it hasn't done so with the federal income tax system, which NTU estimates as costing individuals and businesses nearly $230 billion in 2012.
- Internet-based retailers already pay numerous taxes on profits and property, while customers pay taxes associated with shipping. MFA would let states force online sellers to query customers about where they live to remit proper sales taxes – something traditional retailers wouldn't do. The bill's "small seller" exception remains paltry by comparison to other government definitions of a small business.
- The U.S. Supreme Court's Quill ruling has prevented state tax collectors from aggressively reaching across their borders, but MFA would overturn this important protection against abuse of power. The bill's attempt to carve out a sales-tax only exception to this ruling likely won't survive long. After the precedent to collect one kind of tax this way is established, administrators will likely clamor for the same authority over other taxes.
- The bill gives states wide latitude to define taxable "nexus," including its controversial extension to online advertising affiliates. Even states choosing not to participate in MFA's framework would have new powers.
Taxpayers, Businesses, And Economy Will Suffer Under New Internet Sales Tax Bill, Citizen Group Warns
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