It’s 2014, and American consumers are increasingly making purchases online. This trend shows no signs of changing. But Senate Majority Leader Harry Reid (D-NV) and his ideological allies are scheming to throw a wrench in the works. Online shoppers who enjoy the benefits of tax free online shopping may no longer be able to do that if Sen. Reid gets his way. Small online businesses are currently taxed on sales only where they have a physical presence and therefore political representation. If the Internet sales tax becomes law, they will no longer have that freedom, which is a violation of federalism.
Reid announced in September that he will do whatever it takes to pass an Internet sales tax bill, the misleadingly named the Marketplace Fairness Act (MFA), after the midterm election. The bill would place burdensome regulations on small online businesses and would entail a massive expansion of state taxing authority. Because only 35 percent of Americans support Internet sales tax legislation, he plans to attach it to a very popular ban on Internet use taxes known as the Internet Tax Freedom Act (ITFA).