Market Fairness Act

Many states are considering imposing regulations to collect internet sales tax within their respective states, except Alabama, who is currently collecting internet sales taxes. Businesses are arguing that if they don’t have a physical presence or store within the state, then it is unfair to collect internet sales tax. The U.S Supreme Court has decided that internet companies can sell goods without collecting a sales tax as long as they have no physical location in that state. New York, Rhode Island, California, and Georgia has established state regulations for online retailers. These states collect sales taxes despite the U.S Supreme Court’s rulings. Congress has attempted to implement laws such as the Market Fairness Act and the Remote …show more content…
363). By establishing an e-commerce sales tax, the local government would deter people from purchasing goods online. When consumers don’t buy products online, e-commerce businesses lose money. A tax intends to move resources away from private use and will by itself harm the private sector; tax policy seeks to achieve that shift with the least possible economic or social harm (Mikesell, 2017, pg. 363). Establishing an e-commerce sales tax will produce social harm and economic harm. The government will detrimentally harm the welfare of businesses and citizens of America, by implementing an e-commerce sales tax. The reason why consumers purchase products online is to get a deal, discount, or sale that physical stores cannot provide. Economic harm will take place when customers go online and have to pay sales tax. Many retailers tell their customer that if they go online, they will get a cheaper price. If there isn’t a lower price point on the internet, then consumers will not purchase products online, which will result fewer taxes business will pay. Consumers, businesses, and governments will suffer if an e-commerce sales tax is …show more content…
This article applies to current real world business and personal situations. Many America citizens feel that the U.S government imposes too many taxes on low and middle-class citizens. Rich people within the U.S hire tax lawyers and write off losses and don’t pay any taxes at all. Donald J. Trump explicitly acknowledged for the first time during Sunday’s debate that he used a $916 million loss that he reported on his 1995 income tax returns to avoid paying personal federal income taxes for years (Eder, 2016). The President of the United States didn’t pay taxes for years, but the average American has to pay taxes every year. If an average American citizen doesn’t pay taxes, he or she will go to federal jail or have to pay hefty