[socalgop]

Uh...this doesn’t raise taxes. It makes companies collect sales taxes people already have to pay - the alternative to doing this is for state governments to audit consumers to make sure they are declaring taxes they owe.

The MF act also exempts small business with less than $1m in sales volume.

This is about amazon and other large retailers getting a de facto subsidy because people use those sites to dodge sales tax, which hurts small businesses with brick and mortar footprints.

It is a rise in the effective tax rate, but only because it is enforcing existing sales taxes. Maybe the best option is to abolish sales taxes completely, but the second-best option is to level them fairly, both because it avoids economic distortions and is a fundamental question of the rule of law.

[Alright2BRight]

You are correct. The current prohibition on out-of-state collection of sales tax on internet sales is a subsidy to online sellers. The current system makes me feel guilty when I buy items online because I know I am making a personal economic decision to save money (free 2-day shipping and no sales tax - Amazon Prime) at the expense of my neighbors. I also feel guilty annually when I don't remit the sales because I know nobody else is doing it. Unfortunately, when I drive through my NC hometown, I see way too many closed-up store fronts of retailers that had been fixtures for decades. I know there are more reasons than tax-free internet purchases causing so many business closures, but if the choice were price neutral, I know many would rather shop AND BUY at their local business. Now, because Amazon and others have a 6.75% head start, too many shop local and go home to complete their purchase on the internet.

This bill will result in me PAYING more sales tax, but I won't OWE more sales tax as a result. If NC can maintain its current conservative majority, I can hope they will reduce rates (income tax and sales tax) for the new revenue they receive if this bill becomes the law of the land.