Online Taxes

Congress is in the middle of trying to pass yet another tax on Americans.  This time it's for online shopping.  Let's face it, whatever way you want to look at this issue, or argue it, it means you and I will be shelling out more money for things. But that is not the big issue.

There are so many arguments concerning this. And I will later on in this blog tell you about my personal reasons on how this truly affects me. I heard a great argument on the Onpoint Radio Show with Tom Ashbrook.  The caller, who was a small online business owner, said that they already paid federal, state and local taxes for their business, and so why should they have to pay taxes to a state that they probably will never physically travel to — isn't that truly taxation without representation?  Isn't that what Great Britain was doing to the Colonists?  I think so, and if you don't agree, will you please explain to me how it isn't?  It's the exact same dynamic.

I was just checking around and saw a pretty significant poll being held on Courant.com where a Yes / No Vote was going on (Yes, Congress should create this tax / No, Congress should not). So far, as of this writing, "Yes" votes have 26% — "No" votes have 64%. And the Senate just passed this 69/31 — I think they got it backwards.  And now this vote is going to the House.  For once I am on the side of the Republicans on this.

I also know that there is a rumor that this will not affect small businesses that only make a certain amount of money.  This is bupkis.  The law is written in a way that each state can interpret that.  I look at this as the first of many steps to take down "net neutrality." Yep,  just flush it down the loo.  The powers that be who want that to happen will do EVERYTHING to take away online rights.  If they can't do it one way — in one fell swoop — then they will begin to do it piece by piece.

I was sooooo surprised that Sen. Elizabeth Warren voted for this,  see record below.  How anyone can look at this bill's effect on the small business community, and not realize how unfair it is, is difficult to fathom.

Why is this unfair for small businesses? 

With this vote small business owners who are online will ultimately have to do many onerous things beyond collecting the tax.  I don't begrudge the tax, that's not what my argument is about.  What I am saying is that all of these small online businesses don't have the time, money or infrastructure to adhere to this law.  I have done a little straw-poll, and my clients EXPECT ME to help them through this should they have to adhere to this law.  I am telling you right now, I am a content strategist / web developer, not a tax accountant!

And there's the rub.  Take this small scenario and multiply it all over the country, and the small business web industry, and all of that business will transfer to bigger web consultants, who will charge these small businesses more money.  It is inevitable, it will happen — even though the Courant vote above suggests it is ill-advised for Congress to do this.  But then again, 90% of Americans believe in background checks for guns, and look how that went.