Free Republic

On April 1, as was widely known, Japan raised its sales tax from 5% to 8% - a move many dread could unleash a recession as happened the last time Japan hiked a consumption tax in 1997. A week later the verdict on just how much consumption was frontloaded ahead of the hike is in, as we get the first sales data on the ground. The result is, in short, a disaster: overnight the Nikkei reported that Japanese department store Takashimaya’s revenue in April 1-7 period crashed 25%!  We for one can't wait to see what Japan's Q2 GDP...

The Texas Legislature’s point man [Drew Darby] on transportation funding says Texas motorists need to understand that a higher gas tax would be a more 'open and transparent' way of dealing head on with the state's transportation crisis than the 'congestion tax' that motorists are currently paying every day. "I think we need to revert to pay as your go," State Rep. Drew Darby (R-San Angelo) told the San Antonio Mobility Coalition."Nine times members of the Legislature have raised the gasoline tax to pay for our transportation infrastructure, but that hasn't happened since 1991. Lawmakers over the past several years...

In the coming weeks, Americans will spend an average of 13 hours and $210 to prepare their federal taxes. Beyond the compliance burden the federal tax code imposes, it also distorts economic activity and discriminates against some taxpayers in favor of others. But one of its most egregiously unfair provisions is also among its most popular - the mortgage interest deduction. In theory, the mortgage interest deduction is supposed to encourage home ownership, a questionable goal for government to begin with. The purpose of taxes is to raise money to finance government services, not to manipulate human behavior or economic...

"A new rule in the Alabama tax code that went into effect at the end of last month will change the way some companies collect and remit sales taxes....Put simply, the new rule's aim is to have businesses pay taxes to the county and city governments in places where they do business.",,,In short if you want the store to deliver that refrigerator to your home, now they won'tbecause this requirement costs them time and money.....the state has not announced this and retailers don't know but are liable.,,,,

As the holiday shopping season approaches, consumer may find an unlikely adversary: the retail industry. According to reports, “big retailers like Walmart and Apple ramp up their holiday ads early this season” and “Representatives from leading retail associations name online sales tax legislation as a chief concern for their members right now.” That’s right, the retail industry is targeting online Christmas shopping. What proponents misleadingly call the “Marketplace Fairness Act” would significantly increase the cost of buying goods on the Internet. The bill would force online businesses to collect and remit sales tax based on each customer’s location. Put another...

Massachusetts residents have only a few days of tax-free shopping left on Amazon.com. Beginning Friday, the state will apply its 6.25 percent sales tax to purchases made from Amazon, though the tax will not apply to third-party vendors who use the site. The state reached an agreement with Amazon last year. Owners of traditional "brick and mortar" stores have long complained of being at a competitive disadvantage to online retailers who are not required to collect sales taxes. State revenue officials tell The Boston Globe the tax on Amazon purchases is expected to raise nearly $37 million for the state...

Jefferson County commissioners on Wednesday were informed the sales tax in the county will be going up 0.25 percent on Sept. 1. The state Legislature voted to increase the state sales tax to 5.75 percent. Coupled with the county's 1.5 percent sales tax, purchases made in Jefferson County will have a 7.25 percent sales tax. County Commissioner Tom Gentile expressed some displeasure with the announcement. Gentile said the state's budget surplus has grown to $1.5 billion, the state has taken money away from local governments and then is raising the state sales tax. The Ohio Department of Taxation is mailing...

What type of tax reform do you want? Simplification of the existing progressive income tax system? A flat tax? A sales tax? A value-added tax? Tax professionals, economists, elected officials and others heatedly debate the pros and cons of each. However, it is unlikely that real tax reform will occur until the financial crisis gets so bad that most people will agree to radical change. Most tax reform discussions and debates lead with the premise that any new tax system has to raise roughly as much revenue as the present system. Why should that be? Currently, the federal government spends...

Whenever there are tens of millions of dollars worth of lobbying muscle behind a piece of legislation, folks seem willing to say just about anything to make a case for it. The Marketplace Fairness Act, the misguided legislation to allow states to enforce their tax laws on out-of-state businesses, is but the latest example. Here are the top 10 bogus arguments in favor of the bill.

Entrusted with a government credit card, an Internal Revenue Service worker allegedly used the plastic for a years-long Amazon.com shopping spree that netted her hundreds of items, including a chocolate fondue fountain; Bollywood movies; Pampers; Harlequin romance novels; Omaha Steaks; Apple Bottoms skinny jeans; mango body wash; and a Ginsu knife set. According to a court filing, Oseni was given a Citibank MasterCard for the “purchase of office supplies for her business unit.” However, a probe by the Treasury Department’s inspector general determined that Oseni has made scores of unauthorized purchases since being provided the IRS credit card in mid-2009....

S. 122: Fair Tax Act of 2013 Summary: A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. More info ... http://www.govtrack.us/congress/bill.xpd?bill=s113-122 93% support out of 836 votes as of this post.

<p>As seemingly every sentient being now knows, the Internal Revenue Service (IRS) has apparently been selective when it comes to the entities its agents scrutinize. Tea Party groups in particular (organizations known to be less sympathetic toward the IRS) seem to have generated abnormal amounts of attention from it.</p>

Speaker John Boehner (R-Ohio) said Tuesday that he likely couldn’t support the online sales tax bill that the Senate passed this week, underscoring the challenge that supporters face in getting the measure through the lower chamber. Boehner told Bloomberg Television that the Marketplace Fairness Act, which got 69 votes in the Senate on Monday, would heap a “big burden on some very small businesses.” "I just think that moving this bill where you have 50 different sales tax codes, it is a mess out there,” Boehner said. “You are going to make it much more difficult for online businesses to...

The US Senate on Monday passed a bill aimed at ending tax-free shopping on the internet but the move looks set to face fierce opposition before it becomes law. The Marketplace Fairness Act, which has cross-party supporter and the backing of powerful retailers, would give states the power to require retailers with sales over $1m to collect state and local sales taxes for online purchases.

The internet is the most recent, best equalizer for small businesses hoping to make it a business world that requires millions in facilities, start-up, advertising, and delivery. That is why the following letter caught my attention regarding the proposed, new online sales tax. It is such a great, concise summary of the wrong-headedness of the internet sales tax. The great businesses spawned by the advent of the internet, the googles, facebooks, and amazons, are now huge. But the smaller businesses and potential start-ups are the real story. Please read the following letter and, if it mirrors your sentiment, strongly consider...

There is a bill working it’s way through the Senate that will tax internet sales transactions. President Obama has said he endorses the bill to raise taxes and will sign it. Before being “for” or “against” the bill using heuristics from your personal beliefs or talking points from the competing factions, it’s important to know what a government tax is. Put simply, it’s a hurdle or roadblock. If you want less of something, tax it. Taxes make marketplaces less efficient. Taxes are also a limit to personal freedom. Some see taxes as a revenue generator for government. But, governments can’t...

WASHINGTON (AP) — You don't see this very often: a majority of Senate Republicans voting to make people who buy stuff on the Internet pay state and local sales taxes. The Senate could vote as early as Thursday on a bill to empower states to require online retailers to collect state and local sales taxes for purchases made over the Internet. Under the bill, the sales taxes would be sent to the states where a shopper lives. On Wednesday, the bill passed a test vote in the Senate, 74 to 23, with 27 Republicans voting in favor. Senate Majority Leader...

Proposed Internet sales-tax legislation received a huge boost on Monday when the White House officially backed the bill, saying it would level the playing field among online and retail stores by ensuring that both pay sales taxes. “Today, while local small-business retailers follow the law and collect sales taxes from customers who make purchases in their stores, many big-business online and catalogue retailers do not collect the same taxes,” White House press secretary Jay Carney. “This puts local, neighborhood-based small businesses at a disadvantage to big, out-of-state, online companies.”Now, the Senate is scheduled to debate the Internet sales-tax legislation for...

Republican Gov. Bobby Jindal has bowed to the inevitable and "parked" his plan to swap Louisiana's personal and corporate income taxes for a broader, steeper sales tax. It was a dramatic way to open the Legislature's fiscal session Monday. It was also, of course, a political reality. The governor's plan wasn't going anywhere. But here's hoping the fact that Jindal's initial proposal has now been taken off the table doesn't mean state tax reform leaves the scene, too. As the second part of NOLA.com's headline notes, he called for an "alternative plan," and hopefully legislators will follow through on that...

Today, America's Health Insurance Plans (AHIP) President Karen Ignagni issued a press release in support of bipartisan legislation (H.R. 1370, S.1880) co-sponsored by Rep. Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act's (ACA) health insurance tax. While much of the dialogue on healthcare reform centers on the federal mandate of health coverage for all Americans - which many conservatives call the largest tax increase in U.S history - less attention is being given to the massive sales tax increase on the purchase of health insurance also implicit within the legislation that will dramatically escalate costs...

U.S. states could collect millions of dollars in online sales taxes, with members of both parties in Congress sponsoring legislation Thursday that would resolve states' decades-long struggle to tax businesses beyond their borders. "Small businesses and states alike are suffering from the inability to collect due — not new — taxes from purchases made online," said Rep. Steve Womack, R-Ark., adding the legislation is a "bipartisan, bicameral, common-sense solution that promotes states' rights and levels the playing field for our Main Street businesses." Legislation on the Amazon tax, named for the colossal Internet retailer, has languished for years. ..... <...

Virginia Governor Bob McDonnell delivered his state of the Commonwealth address on Wednesday, marking his vision for the state as the General Assembly opens the 2013 session. One of the most striking parts of his presentation is a proposal to eliminate Virginia’s 17.5-cent per gallon gasoline tax, and replace this portion of state roads funding with an increase in the state’s sales tax.

Dread. Usually not a word one associates with the New Year… well, provided one is not a glass half-empty sort. Hopeful, encouraged, positive… that sort of rot is what travels the aural circuit in the week or so following clean-slate day. But ‘round these parts – and near the nether regions of other state capitals – the newly-birthed year is greeted with a level of enthusiasm rivaled only by the anticipatory feeling derived from the possibility of a TSA cavity search. And that point of comparison is frighteningly accurate; given said cavity is the only place our local legislators have...

The other ObamaCare middle class tax hike arrives in 2014By: John Hayward 12/12/2012 09:14 AM If you think it’s been horrifying to watch ObamaCare pop open like a jack-in-the-box filled with tax increases over the last couple of weeks, just wait until the huge new taxes on health insurance companies hit in 2014. A study commissioned by America’s Health Insurance Plans (AHIP) lays out the details: The [Affordable Care Act] imposes a new sales tax on health insurance that starts at $8 billion in 2014, increases to $14.3 billion in 2018, and will continue to increase each year. The Joint...

This may be the last Christmas of online shopping without paying sales tax. A proposed online sales tax has been offered as an amendment to the National Defense Authorization Act, much to the ire of opponents. The Computer and Communications Industry Association, a group that opposes this move, says that an online sales tax will burden small businesses, “some of the most promising candidates for future economic growth.” “This proposal, and other online sales tax collection proposals like it, would allow states to penalize the innovative e-commerce business model by targeting small online businesses as convenient sources (and collectors) of...

SACRAMENTO, Calif. — Online retailer Amazon.com has tried to become all things to all consumers, but in California, it is about to take on a role it has fought against for years: tax collector. The change, which takes effect this weekend, comes after years of bitter back and forth between the world’s largest online mall and the California Legislature over whether Internet retailers should have to impose sales taxes on customers. The two sides reached a deal in 2011 that included a one-year grace period set to end Saturday.

Atlanta Metro area rejects a massive tax increase (an additional one percent sales tax on the existing 6% - 8% around the metro area.) The county by county results are as follows: County YES NO Total Ratio yes/total Cherokee 9105 35280 44,385 20.51% Clayton 16750 19303 36,053 46.46% Cobb 38703 85412 124,115 31.18% DeKalb 57915 61792 119,707 48.38% Douglas 6383 13534 19,917 32.05% Fayette 6677 21712 28,389 23.52% Fulton 69064 72365 141,429 48.83% Gwinnett 28884 70273 99,157 29.13% Henry 9405 23371 32,776 28.69% Rockdale 5433 12484 17,917 30.32% Total: 248,319 415,526 663,845 37.41%

Republican governors, eager for new revenue to ease budget strains, are dropping their longtime opposition to imposing sales taxes on online purchases, a significant political shift that could soon bring an end to tax-free sales on the Internet. The newfound support among Republicans is a dramatic change from just a few months ago. [N.J. Gov. Chris]Christie called taxation of online sales "an important issue to all the nation's governors" and endorsed federal legislation giving all states taxing authority.

Early voting just began this week for the upcoming primary, but some metro counties are already seeing a surge of early voters. In Henry County, elections officials say they are seeing up to 500 voters a day and are now expecting a 45-50 percent turnout for the primary. Turnout has been similar in DeKalb County. "We are already seeing more people coming out than in 2008's primary... we've already voted more people in three days than we voted in the first five weeks of 2008," says the county's elections supervisor Maxine Daniels. She says the presidential race, the transportation sales...

The fate of California's controversial Proposition 29, a proposed tax on cigarettes, was still unclear early Wednesday. By 3 a.m. (6 a.m. ET), 98.6% of the precincts had reported. The vote tally stood at 49.2% in favor and 50.8% against the proposed law that would raise taxes on every pack of cigarettes by $1, yielding an estimated $735 million a year for the state, election officials said. About three-quarters of money raised would go to cancer research.

After voting this week to raise income tax rates on the state’s highest earners, Maryland lawmakers aren’t ruling out more tax increases next year. The General Assembly passed legislation that will raise taxes on the top 14 percent of earners in an effort to balance the state’s $35.5 billion budget and cut half of Maryland’s $1 billion structural deficit, which measures expected revenue shortfalls in the future. Lawmakers could look to eliminate the remaining $500 million deficit over the next year by methods such as expanding gambling in the state, cutting spending or passing a long-debated tax increase to fund...

Less than a week after Gov. Jerry Brown started using robotic telephone calls and mailers to gather signatures for his ballot initiative to raise taxes, the Howard Jarvis Taxpayers Association plans to launch its anti-tax campaign today on the conservative "John and Ken" talk radio show. The taxpayers group this morning posted a red banner on its website inviting viewers to join a "Don't Sign the Petition" campaign. The banner links to a campaign website opposing Brown's effort to raise the state sales tax and income taxes on California's highest earners.

Gov. Martin O'Malley says he still hopes to convince the legislature to raise money for highway and transit projects — possibly by adding another penny to Maryland's six-percent sales tax and dedicating the extra revenue to transportation. In an interview with The Baltimore Sun, O'Malley conceded that his initial proposal to apply the sales tax to gasoline is dead in the General Assembly. But he said an alternative would be a delayed implementation of that proposal, with the sales tax not being applied until gas prices fell to a certain level. A second option, he said, would be to raise...

As many states move forward with pro-growth spending and tax reforms, a couple of state legislatures are taking steps in the opposite direction. Legislators in Virginia and Kansas are advancing bills that seek to dissolve the physical nexus standard in their respective states and implement an Internet sales tax on out-of-state companies. This type of tax will not only kill jobs and close down businesses, as it has done in other states, but it is also entirely unconstitutional. In Kansas, SB 371 moves to push the long arm of the tax collector past its appropriate state boundary and count third-party...

Even though California’s statewide sales tax declined in June with the expiration of a temporary 1% tax, the Golden State still has the highest statewide sales tax in the country at 7.25%, according to data from the Tax Foundation, a Washington D.C. nonpartisan fiscal research group that favors low taxes. When combined with locally imposed sales taxes averaging 0.86%, California drops to 12th in combined sales tax that consumers pay on most purchases.

WASHINGTON - A day after the governor of Maryland said he would like to institute a percentage tax on gasoline, the chief executive of Virginia said he would not seek any additional taxes during a recession, particularly on gas, despite a significant demand for more transit projects. Both states have looked to sales tax to resolve their transportation funding woes. On Monday, Maryland Gov. Martin O'Malley said he would like to do away with a ban on sales tax for gasoline, to add to its existing 23-cent flat tax. Virginia Gov. Bob McDonnell has a different approach. "I will not...

IN THE MAELSTROM of tax increases proposed by Maryland Gov. Martin O’Malley (D), it’s easy to lose track of which are most critical. For a start, it’s useful to identify which needs have been most and longest neglected — and near the top of that list is transportation. It’s been 20 years since Maryland raised its gasoline tax, the largest source of transportation funding. As construction costs have risen, the revenue it yields has plummeted in real terms. At this point, Marylanders (like Virginians, who last saw a gas tax increase when Ronald Reagan was president) are not paying for...

WASHINGTON - Many of Maryland's traffic woes would be alleviated by allowing a percentage tax on gasoline, the state's governor said Monday. While speaking on WTOP's "Ask the Governor," Martin O'Malley said he would like to "phase out" the sales tax exemption on gas, which would allow a percentage tax on the fuel in additon to the existing 23-cent flat tax. The current flat tax has not changed since the early 1990s when gasoline was about $1.08, the governor says, adding the regional arteries wouldn't be so clogged if the state had more to invest in transportation infrastructure. "The best...

5 Unusual Sales Taxes You Need To Avoid With the economy still struggling, states are getting fairly crafty with how they charge consumers via sales taxes. It's no secret that dubious, yet all-too enforceable government laws have been with us since the dawn of the civilized world. In ancient Egypt, the pharaohs taxed cooking oil – of course, the main seller of cooking oil was the pharaoh. During the first century AD, the Roman empire taxed urine – a popular source of ammonia for common tasks like tanning hides and cleaning clothes. Then at the height of the Dark Ages...

Gov. Jerry Brown has formally proposed a $7 billion a year increase in sales and income taxes to close the state's chronic budget deficit. Whether it will be the only tax increase on the November ballot is uncertain. Several others are in the works, and if they reach the ballot as well, voter confusion could doom all. But assuming that Brown's stands alone, how would the campaign shape up? By next year, he presumably will have pulled the spending cut "triggers" built into the 2011-12 budget because revenues are not meeting its extremely optimistic levels, which would mean schools, colleges...

The days of skirting around having to pay retail sales tax by shopping online may be coming to a close—and Amazon, of all companies, is supporting the effort. Online retailer Amazon.com has a long history of fighting requirements for shoppers to pay their local state sales tax whenever a purchase is made via the Internet. Most recently, Amazon has been battling it out with California, which has been trying to force Amazon and other online retailers with ties to the state to collect sales tax on purchases.

We've steered away from this question for some time now, since so many other current events have seized the news cycle, but Herman Cain had a fairly long history of pontificating on the radio and writing editorial pieces before he began his current run for the presidency. When you generate that much material, you're bound to leave behind a few nuggets for your opponents to find. The case in point today, however, if a fairly glaring one. Highlighted by Doug Mataconis at Outside the Beltway, it’s noted that Mr. Cain may have written passionately about an idea which runs directly...

Republican presidential candidate Herman Cain has done the nation a great service by proposing major changes in the byzantine way the U.S. government collects its revenue. Cain maintains that his so-called "9-9-9" plan restructures the nation's tax system in a way that significantly boosts real growth. He also claims that his program is revenue-neutral. This means that it is designed to replace the revenues generated by the current tax system. Restructuring the U.S. tax system along the lines Cain proposes might promote explosive economic growth. However, there are serious problems with tax proposals that claim to be revenue-neutral. One potential...

Tthe Wall Street Journal’s Steve Moore, who helped design Herman Cain’s 9-9-9 tax plan, is having second thoughts about the political viability of the national sales tax aspect of the plan and has recommended a 9 percent payroll tax to replace it. In an interview with National Review Online, Moore explains that he has “come to the conclusion that a national sales tax is just a nonstarter,” politically. While he wasn’t expecting such a hostile reaction to the idea, Moore concedes that “people are naturally suspicious of a new tax.” Cain’s current plan would eliminate the payroll tax altogether, and...

Now that President Obama and the Democrats have generated a projected record $10 trillion in new debt over the next 10 years, they are now singing their favorite song: We must raise taxes! Sen. Dick Durbin, D-Ill., sent the first signal a few weeks ago when he said paying taxes is the price we pay for living in this great country. Never mind that we are paying too much and that too much of our money is being wasted. One of the president's senior economic advisers, Paul Volcker, said recently in a speech that "we must raise taxes" to deal...

Herman Cain tested the national spotlight Sunday as the Republican presidential primary’s newest front-runner. Facing tough questions during a 25-minute one-on-one interview on NBC’s "Meet the Press," Cain acknowledged that his plan to simplify the tax code would raise taxes for “some” people and clarified his position that he doesn’t believe abortion should be an option in instances of rape and incest. Scrapping the current federal tax code — which he described as a “10-million-word mess” — would eliminate a host of invisible taxes and eventually reduce prices, Cain said. Some economists have pointed out that Cain’s plan would shift...

September 22, 2011Combined State and Local Sales Taxes: New Report by TF StaffToday we released a new report on local sales taxes, which updates a study we published in February.  The new report updates the state and local sales tax rates across the country and ranks each state on its combined state rate and average local rate.  Click here to read the report. Most shoppers have some idea of the sales tax rate imposed by their state, or they can at least find the rate by looking at the receipts they receive with every taxed purchase. However, it's easy to forget...

ANNAPOLIS — A Senate leader in the Democrat-controlled General Assembly said Wednesday that a proposal to increase the state’s gas tax might get shelved during its 2012 session because of anticipated budget woes and public outcry. Senate Budget and Taxation Committee Chairman Edward J. Kasemeyer, Baltimore County Democrat, said legislators will likely have their hands full attempting to close an anticipated $1 billion budget shortfall and might not get around to considering a proposal to raise the 23.5-cents-a-gallon excise tax. A state-appointed commission recommended last week that lawmakers pass $520 million in tax and fee increases to fund improvements to...

Monday, September 12th at 12:00 Noon on the corner of Markham and Broadway The Chamber of Commerce is calling for a "Early Vote PRO 1 cent Sales Tax" Rally. The Arkansas Tea Party is asking you to make a sign Against Any New Tax and stand across from them. No shouting, No Chanting.....just to have our presence in opposition to a new tax!!! Rally against the Little Rock Sales Tax Monday September 12th! _________________________________________________________ We need people to cover polling sites with signs and flyers opposing urging people to vote NO (against) on the LR sales tax increases September 13th!...

SACRAMENTO -- The big showdown between traditional retailers and the online sales giant Amazon may dissolve into one big handshake. Amazon is considering backing away from a referendum to overturn a law forcing the company to collect sales taxes if a deal can be worked out with brick-and-mortar retailers and legislative leaders, according to Capitol sources. Amazon would get a two-year reprieve on California taxes but would pledge to support Congressional action on leveling the playing field on Internet sales taxes nationally, according to one person involved in talks between the traditional retailers and Amazon. The negotiations took place Tuesday...