Before the Senate passed its first budget in nearly four years, Sen. Mike Enzi (R-WY) proposed an amendment — the Marketplace Fairness Act — that would make it easier for states to collect online sales taxes. Despite the numerous policy and constitutional issues this bring, the amendment passed by a vote of 75 to 24.
Ron Paul, who didn’t seek re-election last year and serves as chairman of Campaign for Liberty, explained last week that the Marketplace Fairness Act — what he calls the “Internet Tax Mandate” — is another example of big business working with the government to get special favors:
The Internet Tax Mandate also violates the original purpose of the Commerce Clause, which was to guarantee free trade among the states. Instead, the bill would allow states to levy taxes on goods crossing into their state, which is not what the Founding Fathers intended. Why should California be able to force a business in Texas to collect and pay California sales tax?
When considering any economic proposal, the unseen, potential ramifications must be examined. This mandate could discourage online commerce and stifle the growth of new businesses, exactly the opposite of what we need if we want to expand entrepreneurship and revive our economy. In addition, the long arm of Big Government would reach for companies operating in states currently lacking a sales tax.