If the Florida Legislature wants to pound another nail in the coffin of the middle class during this long recession, it can go ahead with the ill-conceived idea of eliminating tax-free Internet shopping.
It's plain not a good idea.
For one thing, it's neither the rich nor the poor who will be paying a tax on Internet purchases. Primarily the beleaguered middle class will pick up the load -- the millions of working stiffs who lead busy lives, who live on a tight disposables budget, who have a kaleidoscope of sometimes obscure items on their shopping lists and no time to embark on a treasure hunt at the mall.
For another thing, what's happening here is the imposition of a new tax -- something Republican legislators in Florida said they would never allow on their watch.
The biggest push for Florida to collect $450 million a year in taxes on Internet shopping comes from a lobbying group called Florida Alliance for Main Street Fairness. But understand, many Alliance members arent exactly mom-and-pop operations. They are the big-box boys such as Wal-Mart, Target, Best Buy, Home Depot and Sears.
They are, in fact, the Florida Retail Federation, the Florida Chamber of Commerce and Associated Industries of Florida. Senate President-elect Don Gaetz, R-Niceville, and Sen. John Thrasher, R-Jacksonville, have both openly endorsed the Alliance agenda.
These retail giants claim they are not advocating a new tax. They purport to care only about leveling the playing field between brick-and-mortar stores and online retailers.
Sorry, guys. Taxing retail sales on the 'net really would be a new tax.
There are at least twomajor players who have said they agree with that assessment. Senate President Mike Haridopolos and Gov. Rick Scott are none too fond of the new tax, however or whatever it levels. They claim that any such bill should be offset by a reduction in taxes somewhere else.
In 1992, the Supreme Court barred states from collecting sales taxes on businesses that did not have a presence in the state. The court ruled that such laws amounted to regulating interstate commerce a power granted only to the federal government.
There is another issue.
A recent Florida Internet tax loss study by Arduin, Laffer & Moore estimates that by 2020, the total tax revenue loss will grow to between $842 million and $937 million, meaning Floridas potential tax revenue during the current decade would be between $6.5 billion and $6.8 billion. If that is accurate, ask yourself how and where that money will be spent?
Will it disappear in general revenue?
Will it become a trust fund, then go the way of the Bright Futures scholarship money, gobbled up for other legislator-flavor-du-jour endeavors until it barely exists?
Can we please look more closely at how wise it is to impose an Internet sales tax in a bad economy, one that is scraping the heart out of the middle class? And, realistically, how do we keep this money on the straight and narrow, clear of misappropriation?
Opinion column: Reach Nancy Smith at nsmith@sunshinestatenews.com or at (870) 727-0859.
