Thomas Carlson Blog- Steve Womack Wants to Raise Missouri’s Taxes by $84.50 per Person: Internet Sales Tax

The sentiments expressed in this blogpost are the sentiments and experiences of Tom Carlson and do not necessarily reflect the views or opinions of the WE R HERE coalition or other member companies.

The Marketplace Fairness Act (MFA) also known as the Internet Sales Tax legislation is heating up next week.  The U.S. House Judiciary Committee has a hearing scheduled on March 4, 2014 titled “Exploring Alternative Solutions on the Internet Sales Tax Issue.”  Supporters of this legislation say that online retailers have an unfair advantage over the traditional brick and mortar stores because many online orders do not charge the customer a sales tax.

U.S. Congressman STEVE WOMACK (Wal-Mart’s Congressman in Arkansas) is the lead sponsor of the MFA.  He also spent most of his childhood living in Moberly, Missouri. He has been selling this legislation to the public saying it is NOT a tax increase.  STEVE WOMACK is WRONG it is a tax increase. Here are two of his written statements:

  1. “The Marketplace Fairness Act does not raise taxes…” (Source Steve Womack, June 28, 2013)
  2. “Leaders like Governor Scott Walker of Wisconsin and Governor John Kasich of Ohio have already implemented plans to cut their state income taxes once they are enabled to collect this due – not new – sales tax, allowing taxpayers to also see significant economic growth from tax cuts MFA makes possible. (Source Steve Womack, July 18, 2013)

The rationale behind this legislation is that states have been unable to collect “use tax” from their citizens that buy online or via mail order so they want remote sellers to collect the sales/use tax for them and submit it back to the customer’s home state.  A “use tax” is when you purchase an item in another state and use the item in the state you reside.  You are then required by law (depending on the state) to report the purchase on your state income tax return.  Then you pay the “use tax.”  Most people do not report the purchase to their state and the tax often goes uncollected.

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Tom Carlson is a small online retailer. He is the Vice-President of Assisted Living Store, Inc. based in Saint Paul, MN. Check out Tom's  blog here for more of his thoughts and writings.