Internet Sales Tax – One More Reason To Head Offshore

Income Taxes, Sales Taxes, Excise Taxes, Road Taxes...maybe Precious Metals Taxes Next?

Income Taxes, Sales Taxes, Excise Taxes, Road Taxes…maybe Precious Metals Taxes Next?

Hi guys, Barry in DR here.  It is interesting watching the piecemeal nipping away of rights and freedoms of US citizens.  The Senate is trying to drive one more nail in the coffin of small business owners that do business over the internet.  In their insatiable appetite for more of your money, they just approved a bill that imposes a sales tax on all online purchases.   But heck, whats another 6 to 9 percent tax on everything you buy online.  After all, the small business owners just pass that tax along to the consumers so how are they hurt.

It is bad enough that all of us consumers that have enjoyed the benefits of ordering online may now get stuck with another bill.  But I suspect the real harm to small business owners will be in the horrendous paperwork burden on keeping up with where all their customers are ordering from and then reporting sales to individual states.  That will be a huge burden for many of the smaller business owners.

It is interesting that large retailers like Walmart actively lobbied the Senate to pass this tax bill.  Why?  Because they wanted to “level the playing field” between the smaller online retailers and the the giants like Walmart who already collected these taxes because they also had physical stores in all the states.  “Squash the mom and pop” is another way of saying “level the playing field” I think.

This is just one more easy target to feed the government appetite as it continues to spiral out of control in spending.  I suspect the first of many new taxes in this new wave of “belt tightening”.  Of course, the only belt being tightened is YOURS… not theirs.

A recent article in Sovereign Man makes some good points for where this is headed and why it only reinforces the benefits of diversifying your assets and your life outside your home country.  They sum it up in this way:

Online companies are by far one of the best ways to take advantage of international diversification. You can set the company up in one place, bank in another, process credit card transactions in another, host your web site in another, outsource employees to another, etc… all in the specific jurisdictions which make the MOST sense for your business.

Read the whole article here

For a decent overview of the Senate Bill and its intent y0u can also watch the following youtube video.

Senate approves online sales tax bill

The US Senate has approved a bill that imposes a tax on all online purchases. The Marketplace Fairness Act of 2013 will give states the authority to collect …

Off to tour some land and pick up another group for one of the Discovery Tours.  Until next time it Barry in DR.

Dave May 14, 2013 at 12:39 am

It’s funny how they always name the Act about 180 opposite of what it really does. Sounds like a bureaucratic nightmare. As you know, there’s actually been talk of nationalizing retirement accounts (for your own good) to keep the ponzi scheme going. I took the tax hit and cashed mine out. I believe they’ll eventually take everything if we don’t get it out of the system. Gonna be difficult to take away foreign real estate though 😉

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