The Walmart National Internet Sales Tax-Stop It While You Can

The Walmart Internet Sales Tax Has Passed the Senate-Stop It While You Can

It looks like the Walmart Internet Sales Tax is on its way.

It’s primary promoter is Walmart.  It comes from a struggle of Walmart worrying about the growth of Amazon and other internet sales sites.  Yet Walmart also sells on the internet.  Walmart online can’t compete against Amazon because it has serious baggage.

Understand that many U.S. businesses will lose business because some sales taxes are high, greater than 8%.  In a struggling economy there will be consumers that won’t buy online if they have to pay 8% more.

Where Walmart is narrow and incorrectly focused is that consumers will start buying more from Chinese businesses and other foreign businesses to save that 8%.  If you don’t believe me, go to Ebay and look at the massive number of Chinese businesses online.  EBay buyers will be comfortable purchasing from Chinese businesses because of Paypal guarantees, eBay enforcement on transactions, etc.

Do you think their might be some hypocrisy here considering that a good portion of the Walmart merchandise comes from Chinese companies?  They can import much cheaper goods (in essence costing American jobs), thus getting a double benefit while the consumer pays more taxes. How much tax revenue has federal state and local governments lost because of Walmart buying overseas goods from workers’ loss of jobs?  Where’s the outcry of Walmart about that? 

I urge consumers if they don’t like the Walmart  Internet Sales Tax, which is what the law should be named, that you boycott buying from Walmart.  Things that you buy from Walmart now you can buy online, without the long lines, hassles and decreased customer service.  If you think what they’ve done is motivated by anti-competitive trade practices, then should you indirectly endorse that conduct by buying from them?  If enough of us move our business elsewhere, even if we can’t keep this legislation from becoming law, we can show Walmart that there are consequences when they overstep fair competition.

The cry about states losing sales tax is really an unjust argument.  Why?  Because many businesses that have no nexus (or physical location) to a state will be forced to collect city, county and local taxes at considerable costs to them.  Are the states going to pay them for their labor and time collecting taxes for them, in essence being a de facto tax collector?  No.  What about the costs to purchase the software to do this?  Are they going to get this software for free?  No.

It is the responsibility of the taxing authorities to collect their own taxes.  Many staes have already worked out agreements with the big internet sellers.  And if they can’t effectively collect their taxes, then maybe they have to reorganize their revenue generating methods.

If you disagree with the “Walmart Internet Sales Tax” I strongly encourage you to let the phones ring off the hook to your Congressmen.  Create Internet petitions.  Write letters and be very vocal.  The House of Representatives is the only hope of derailing the Walmart Internet Sales Tax as President Obama supports is new tax.  This means President Obama will likely sign any version submitted to him.

If you disagree with the “Walmart Internet Sales Tax” then I strongly encourage you use the same means of communication about your objections that you gave to Congress to give Walmart.

Walmart, or any other multi-national corporation, should not have that much influence over our legislative process.  Legally the corporation counts as 1 person, not as 328 million+ citizens.

Think about it!—No  Name attorney

 

Senate Passes Wal-Mart Backed Bill for Taxes on Web Sales

By Richard Rubin, Bloomberg News

The U.S. Senate voted to let states require out-of-state Internet retailers and catalog companies to collect sales taxes, a victory for brick-and-mortar businesses that have been lobbying on the proposal for more than a decade.

The measure now goes to the U.S. House, where the issue is dividing Republicans and won’t receive a quick vote.

Senate Passage of Online Sales Levy Imperils Tax-Free Shopping

David Paul Morris/Bloomberg

The measure, supported by the Obama administration, attracted a coalition of backers including Best Buy Co., Amazon.com Inc. and shopping mall owners. Amazon, the largest Internet-based retailer, is expanding into more states to speed delivery, which means it will pay taxes anyway.

The measure, supported by the Obama administration, attracted a coalition of backers including Best Buy Co., Amazon.com Inc. and shopping mall owners. Amazon, the largest Internet-based retailer, is expanding into more states to speed delivery, which means it will pay taxes anyway.

The Senate measure, passed yesterday on a 69-27 bipartisan vote, would end the era of tax-free Internet shopping. It is backed by Wal-Mart Stores Inc. (WMT) and other retailers that say it’s unfair that sellers only have to collect sales taxes on purchases made by residents of states where an Internet company has a physical presence.

“It’s a rare opportunity for us to have Republicans and Democrats together on the floor to support a bill that has the endorsement of business and labor and local officials all across the United States,” said Senator Richard Durbin of Illinois, the chamber’s second-ranking Democrat and a co-sponsor of the proposal.

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