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E-fairness Makes Florida More Competitive
Around the State
Mark Wilson
Florida’s brick-and-mortar retailers, which are a vital part of our communities, are at a competitive disadvantage with the current tax system tilted in the favor of online-only retailers. The Florida Chamber has long championed closing a massive loophole and helping save small-business jobs – an effort we are proud to be a part of with our retail partners.
Closing this loophole will not create a new tax. Florida already requires individual consumers to remit sales taxes for online purchases. Either online or on Main Street, when a sale is made, a transaction has occurred and the sales tax is owed. The same rules should apply online that apply on Main Street. It’s a matter of fairness and common sense — after all, small businesses create four out of five new jobs in Florida and small-business owners invest in our schools and communities across the state.
Some Internet-only retailers have innovative business models and may have well-meaning managers, but the simple truth is they are feeding the myth that corporate leaders put profits ahead of doing what’s right. By not collecting sales tax, online-only retailers are essentially shortchanging Florida’s education system out of billions of dollars while unfairly hurting small businesses and the jobs they create. While Internet-only retailers have decided to shortchange Floridians up to now, they should do the right thing and begin collecting sales taxes on the purchases where the tax is already owed – as in Florida’s case.
It’s time that Internet-only retailers comply with the same laws that brick-and-mortar retailers follow to ensure sales taxes are collected in a simple and fair fashion. Small businesses invested in our communities should not be punished by an unfair tax advantage for Internet-only retailers. E-fairness will make Florida more competitive and Florida’s retailers should be commended for their continued fight for common-sense legislation that will ensure fairness.
Mark Wilson is president and CEO of the Florida Chamber of Commerce. He can be contacted at mwilson@flchamber.com.
Comments (2)
Some are the also only place to buy things, and are operated by just 1 or 2 people. The place I buy wiring connectors for 30 year old motorcycles is a prime example. The owner & sole proprietor had a nice paragraph about the cost of an Internet sales tax on his business. He would have to fill out a tax form for numerous jurisdictions, plus he'd need to calculate the proper tax amount for the city/county in each state. Long story short, he'd be out of business.
Florida, like these United States does not have a tax problem- notably education, which not only has a tax upon the ignorant (the lottery), but also gets two bites of the apple from property owners, and this amount is not subject to reduction via the additional homestead exemption. We waste billions on education due to redundant agencies at the federal and state level. The money would be better spent on teacher salaries and building maintenance.
Florida, like these United States, has a spending problem. One need look no further than our own Dept. of Highway Safety & Motor Vehicles, which wants over $1.5 million this year for REAL ID (driver licenses) and to pay trooper OT to sit in license offices- due to employees feeling threatened about REAL ID. Simple fix- do away with the ineffective REAL ID and problem solved- $1.5 million saved. Anyone want to bet every other state agency could make a similar reduction?
Just don't look to Gov. Scott to do any of this- he's not brave enough to stand up to unconstitutional laws like REAL ID, and he's not smart enough to figure out that "free federal money" for medicare expansion comes from the taxpayers. 94% of federal revenue is from taxes.
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