Lawmakers in Congress introduced a plan to apply sales taxes to Internet purchases, hoping this time they’ve ironed out the problems that scuttled previous attempts. They haven’t, and this attempt at grabbing e-commerce tax revenue has the same flaws as previous attempts.Like its predecessor, the Marketplace Fairness Act (MFA), the Remote Transactions Parity Act (RTPA) violates basic tenets of good tax policy.
During the middle and latter part of the 20th century, a series of U.S. Supreme Court rulings established the concept of a “nexus” allowing taxation of interstate transactions. Before these cases, states could not tax interstate commerce.
Read more: Opinion: Taxing Internet Sales Is Bad for Consumers, Taxpayers – InsideSources
