Congressman Wants Consumers to Pay Hundreds of Billions in Additional Sales Tax

Alexander Hamilton and James Madison are rolling over in their graves as a new congressional bill threatens the America that these Federalist heroes envisioned. In June 2015, Utah representative Jason Chaffetz proposed the Remote Transactions Parity Act (RTPA), which would allow states to require sales tax collection on online purchases by out-of-state retailers.

The National Taxpayers Union is rightfully alarmed by this blatantly unconstitutional action. They rightly argue that this bill would require “consumers to pay hundreds of billions of dollars in additional sales tax while imposing unprecedented compliance burdens on small, online merchants.”

Jason Chaffetz Only Supports Big Corporations

This is simply unacceptable. It’s clear that Congressman Chaffetz values the influence of large retailers like Amazon and WalMart more so than thousands of small online businesses across the country. Under his proposal, online retailers would have to comply with the laws and regulations of nearly 10,000 unique taxing jurisdictions across the country. Small online retailers, who cannot afford teams of attorneys and accountants to meet these new compliance burdens, will be hit the hardest.

And the icing on this rotten cake is that small online retailers – unlike their brick-and-mortar counterparts – receive no benefits from the tax money they collect and they are not able to express an opinion at the ballot box. Instead, local government services in New York could be paid for with sales taxes that a retailer in Wyoming collects.

The Real Cost of the RTPA

This thinly veiled attempt to overpower small online businesses before they become a threat to their large, corporate-backed counterparts would have a disastrous effect on our economy. Not only would these burdens on small online retailers stifle growth and profits, they would hurt job creation and ultimately doom the balance of the American economy.

Even more alarming is the idea that the bill would force retailers to monitor their customers’ online activities. States could use this knowledge to learn about their citizens’ online spending habits and impose more taxes on them.

In an article written for InsideSources, Phil Bond writes that the RTPA will “not only harm small online retailers by imposing new costs and regulations…but it also has the potential to have a dampening effect on Internet retail sales as customers come to understand the added costs and risks from new government oversight into their personal finances.”

What Can You Do?

The WE R HERE Coalition gives small online retailers a voice in the fight against unfair policies that threaten their businesses and their livelihoods. Whether it’s potential Internet tax or international trade policies that threaten these retailers, WE R HERE allows these retailers a chance to add their voice to the growing force advocating Congress for fairer policies.

The consumer doesn’t benefit from the RTPA. The small business owner doesn’t benefit from the RTPA. Only large corporations and distant state governments benefit from the RTPA. Join the WE R HERE Coalition today.