I have a simple, but answered question for the plethora of candidates running for our vacant congressional seat. How will you address the federal obstacles which effectively prohibit our state’s ability to collect an estimated $100 million in annually owed internet sales taxes? You may not realize South Carolina is desperate for that missing money to fix roads, schools and many other unfunded mandates.
As candidates, you know that an honor system is the only current path to legitimate state sales tax collection for any ecommerce transaction involving a vendor who does not have an in-state presence. States have little recourse to remedy this situation since they are blocked from doing so by existing federal rulings. What are your plans to remove those federal roadblocks to a fair and manageable internet sales tax system for all states?
Do you want more than the aforementioned 100 million reasons as to why you should tackle this issue? Let’s begin with the obvious – that revenue hole is only going to grow as the internet continues to take a bigger bite out of total retail sales. Further, the nation’s total e-commerce annual sales tax shortfall is surely much higher than the $11 billion reported 4 years ago. In the end, all this missed revenue only manifests crumbling basic services and counterproductive new taxes.
The state’s coffers are not the only victims of selective internet sales tax exemptions. The few honest people who abide by the current honor tax paying system are the ones left holding the (money) bag. Additionally, hardworking, brick and mortar merchants, especially small retail merchants, are distinctly disadvantaged by out-of-state ecommerce companies who are not required to collect sales tax.
Yes, there are some challenges to a fair ecommerce sales tax. The biggest one is that internet sellers would have to invest in a system which accurately charges sales tax. However this investment would be a tax deduction and would level the playing field because in-state e-commerce vendors already have to have such a system.
Please tell us, Mr. and Ms. Congressional Candidate, will you work toward a fair internet sales tax system?
Randy Bright
Ridgeway
