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“States already have the power to do “origin” based sales tax. Federal legislation is not required for this idea.”

Well, maybe states have the power, but they don’t do it. And what they *do* tax—transactions involving purchasers from their home states even if the transaction took place elsewhere—is something that my proposal would make illegal. So what would occur if Congress passed my proposal would be that states would begin to tax all transactions involving sellers in the state, even if the purchaser was from outside the state, since that no longer would be result in double taxation on purchasers from other states and since they no longer would be able to collect sales taxes on out-of-state purchses from their residents.

I know full well why states like NY and CA oppose such a change: they want to tax their residents who buy stuff out-of-state to avoid paying high sales taxes. Well, I think we can get this passed in the House even without any votes from CA or NY (there are only 21 Republicans from those states in Congress, and some of them would be willing to vote for the proposal).

Your proposal is “origin” based sales tax, that is what it is called in the think tanks and the corridors of power and it doesn’t need congressional approval. A state has the right to regulate the retailers in their state.

The reason no state has pursued origin based sale taxes is no one wants to be first because it will disadvantage their local etailers. So they have come up with this mutual we will all do it together simultaneously plan that requires federal permission because the states are essentially agreeing to give each other jurisdictional authority over each others businesses in regards to sales tax.

Origin based sales tax would create downward competitive pressure on sales tax rates because buyers and business would tend to gravitate toward lower or no tax states.

But if buyers are forced to pay their own states rate regardless of where they shop, then their is no incentive to shop for lower tax rates or for business to relocate to lower tax rate states. That’s why the state legislatures have come up with this skunk of a bill, a sort of mutual assured risk sharing come vote time.

It is business getting screwed here, because we are being made tax collectors for 45 states at our expense of time and money and are liable for audits and fines and punishment to states where we don’t reside and can’t vote.

Bastards!

RE :”“States already have the power to do “origin” based sales tax. Federal legislation is not required for this idea.”
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Well, maybe states have the power, but they don’t do it.”

Except when I buy something at Amazon on my Chase card then Maryland has no record of that to use against me. ‘

I have read that CA brow beat Amazon into charging the tax for CA residents by threatening their other businesss interests,