The Marketplace “fairness” act has, in many incantations been floated for awhile now. It essentially looks to tax online retailers at the same rate as big box stores do at the federal level. It is a federal tax on all online purchases that you make.
In a disappointing effort, republicans are beginning to support the raising of taxes on online purchases. I don’t understand the disconnect. Whether we are raising taxes online or at a physical retail store, we are still raising taxes. We are still hurting business. We are still slowing down the economy. Republicans are supposed to be the party of ready my lips — no NEW taxes.
Mr. Establishment, (who I do not care for) Haley Barbour is on board with this, obviously, because he is the kind of republican that is only conservative when conservatives are looking. His political integrity is very much in question. However, as he may want to run for president in 2016, I hope he will reconsider.
Governor Mitch Daniels, who famously burst onto the national scene by declaring he would throw up the white flag on social issues, is also coming out in favor of this. Again, I am not extremely surprised, if you don’t have the integrity to stand up on social issues at the national level, your smaller government integrity is more likely to be in doubt.
Mitch Daniels has indicated that as President he would do little to push any of the social issue movements forward, thus he obviously doesn’t have the backbone for other uncomfortable issues either. It is easy to be for defense, it is easy to say you are for smaller government, but your stand on social issues is really where the rubber meets the road and we see what you’re made of. Daniels certainly isn’t made of the right stuff. He is supposed to be the fiscal champion of the party, that is precisely why the establishment was chomping at the bit to have him run for POTUS. This reinforces my disappointment in Daniels.
However, Mike Pence has always been a hero for the conservative movement, always walking the line of the party but when push came to shove, doing the right thing. He has always been a lower taxes, smaller government guy. That is why it is so disappointing to hear Pence advocating a tax increase.
If the government wants to create an equal playing field for brick and mortar stores, they should lower sales taxes on the stores, rather than raise taxes on their competitors. Unlike many new taxes, there isn’t even a rational for this one besides, “look at all the money we’re losing?” In any case, there will never be “an equal playing field” by definition because brick and mortar will always have costs associated with running a physical store that online companies don’t have to compete with.
In the end, the supposed inequality is a lie. Like any business model, there are benefits and detriments to online purchasing. You trade the ability to try out, touch, feel and evaluate the product you by online for a slightly lower price. You then have to wait to have it delivered. It is a different model, competitive in other ways.
Does anyone truly believe the race is between online sales verses physical stores sales? This isn’t a black vs. white issues. Most online sales go to already established chains that have simply put up retail websites that work in sync with their physical stores. Even sites like amazon that helped put Borders out of business, allows established companies to sell on their websites.
Many of today’s most successful small business owners started online. This is a platform that allows smaller entities to succeed by eliminating many overhead costs. The last thing these entrepreneurs need is more taxes.
There will always be a demand for physical stores. If these stores are feeling the crunch and need to lower their prices, I still don’t see a problem for the consumers of the United States.
As republicans, tax free shelters that are available to all Americans should be welcomed, not extinguished.
Mike Pence is my top choice to run for president in 2016 and 2012 for that matter. Daniels and Barbour are a lot of establishment republicans choice for 2016, these guys need to either commit to the republican mantra of “no new taxes” or get comfy jobs at the state level. We don’t need our national leaders pushing new taxes on us.