Target: Members of Congress
Goal: Prevent the passing of a national internet tax
Proposed legislation for a national Internet tax would greatly limit the ability of individuals and small businesses to participate in the online marketplace. If made law, this bill would force online businesses to pay state taxes, even though the businesses are not located in a particular state but rather are online in the Internet commons. This tax would raise the cost of products, thereby deepening the stronghold of large companies in the market like Walmart, Best Buy, Home Depot, and Target, who have lobbied for this legislation. This law would even allow the government to tax businesses operating in states that don’t require a sales tax. The national Internet tax must not be imposed.
The Internet tax mandate violates the Commerce Clause of the U.S. Constitution, which guarantees free trade among the states. The tax would allow states to levy new taxes on goods crossing into their state through online purchases and would also allow tax collectors in one state the ability to pursue retailers across state lines, forcing entrepreneurs into a complicated web of record keeping and bureaucracy. Additionally, in the 1992 Quill Decision, the Supreme Court ruled that it was unconstitutional to allow state tax enforcement authorities to impose their sales tax laws on small businesses located in other states.
The proposed legislation represents another way corporations will have found to dominate and push competitors out of the marketplace. This tax law, known as the “Marketplace Fairness Act,” not only violates the constitution but also favors large companies that can afford to absorb the additional costs imposed by this tax, whereas smaller competitors cannot.
Dear members of Congress,
The Marketplace Fairness Act proposes a national tax on the Internet, which violates the Commerce Clause of the U.S. Constitution that guarantees free trade among the states. It also violates the 1992 Quill Decision, where the Supreme Court ruled that it was unconstitutional to allow state tax enforcement authorities to impose their sales tax laws on small businesses located in other states. This tax favors large corporations by forcing small, online businesses to pay state taxes and subjecting them to complex regulatory requirements.
Large companies like Walmart, Best Buy, Home Depot, and Target have lobbied for this legislation. The proposed tax represents another way that corporations can dominate and push competitors out of the marketplace, as large companies can afford to absorb the additional costs imposed by this tax, but smaller competitors cannot. This petition demands that the national Internet tax is not imposed and that the internet remains an intellectual commons that fosters individual entrepreneurship.
[Your Name Here]
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