BY: B. Keith Plunkett
The Picayune Item ran a story earlier this week on the possibility of hearings by the State Legislature concerning the the issue of taxing sales on the internet. State Rep. Mark Formby, R-Picayune, and State Rep. Jessica Upshaw, R-Diamondhead, told reporters that hearings should be held to help gather more information.
On one hand, you have to give a little credit for their willingness to study an issue before leaping. But, this is a losing proposition for Republicans, and it will be especially damaging to Formby who is expected to make a run for Speaker of the House should Republicans gain enough seats in the November 8 election.
According to the article,
Upshaw actually introduced a bill in January concerning what is termed “remote sales,” or Internet sales, when a Gulfport constituent, who owned a bricks-and-mortar business, complained of unfair competition with Internet sales companies.
Upshaw introduced the bill under what is called “by request,” which means that a constituent requested it, and that the fact that Upshaw introduced it, does not mean that she favors it.
She said, at first, she leaned toward supporting the measure, but calls from Internet users from North Mississippi who didn’t want any taxes applied, gave her a perspective of both sides.
“There are two sides to this issue, and we need to look at both of them. I am an attorney, and I am used to not making a decision until I have all the facts in hand,” she said.
Upshaw says she plans to introduce another bill concerning the issue next session and request that hearings be held on it. The old bill that died was House Bill 363.
Both Reps appear to be attempting to wade out and test the waters in order to make some constituents happy. But just beneath the surface await dangers.
Formby makes the disclaimer of being against “any new taxes.” But, he then goes on to say that this is the reason he wants to “study the issue more.”
What’s to study? New taxes are new taxes. Period.
But, then comes the real kicker. Formby says:
“At the same time, I realize that for someone who adds a state sales tax onto a product and is held responsible for charging it and collecting it and paying it over to the state, it is harder for that merchant to compete with someone who does not have to do that.”
“A local merchant, requiring a brick-and-mortar structure, a storefront, finds it much harder to compete with a company that does not have that expense and have also to pay taxes on a building here.”
And there is the losing argument. Protectionism, legislating fairness, meddling in the market; these are all anti-conservative ideas. Any legislation that does any of those things–in fact, any legislation that attempts to even study it–should be loudly denounced as D.O.A. As for the Republican legislator who introduces it, their future prospects become cloudy at best. The very fact that Formby and Upshaw are considering it enough to talk to reporters about it does injury to their conservative credentials.
If brick and mortar shops want to compete with internet sales then they need to move with the market. Not try to have legislators hold back the progress of others so that they can compete.
It’s a fundamental conservative principle that Republicans should know better than to bargain away. It is certainly one that they should know better than to tell the press they are considering “studying”.
Related articles
- What is the Right Solution for Internet Tax? (infokwik.com)
- A Second Attempt to Tax Online Sales (gunnyg.wordpress.com)
- The Internet Tax Man Cometh Again (reason.com)
- State Sales and Use #Taxes on the Rise in Third Quarter (bjconquest.com)
- Get ready online shoppers, sales taxes on Internet purchases are on the way (dontmesswithtaxes.typepad.com)
