If you do a lot of online shopping and don’t want to pay higher prices, you really need to learn about the proposed Marketplace Fairness Act.
This is a proposed Federal law that would require online stores to tax all customers: regardless of current state laws.
Right now, very large companies (such as Walmart or Home Depot) have to charge sales tax. However, the vast majority of companies that do business online are small businesses that will be really harmed by this legislation.
And except for sales within their own states, most stores can sell their products tax free. If the Markeplace Fairness Act (and we don’t think it’s fair at all) the prices you pay online will rise unless the store opts to re-incorporated in one of the five states that have no income taxes. (And frankly: that’s not so hard, so most states won’t get much more money. They’ll just lose jobs.)
And guess what? Odds are you’ll indirectly be paying two sets of sales tax. Here’s why, and what you can do to stop it. Continue reading