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Internet sales tax bill passed in the senate earlier this week and now -- -- -- the house where it is expected to face serious opposition.
So we get represented -- senators from both sides of the aisle joining me now.
Democratic congressman Peter Welch of Vermont and supports the bill Republican congressman Tom graves of Georgia who opposes it.
So our president -- I'm gonna go to you first.
I can understand that your notion is tax fairness should basically be to reduce taxes altogether.
I get back.
But the I don't have that happening any time soon I think are slim to none.
-- you know you just you look at the title this -- the marketplace fairness act and the only place that.
Unity you look at Washington fairness the definition of it is you empower government can you take it from the American people.
I mean that's clearly what's happening here it is more taxes imposed on hardworking Americans and it.
Just not something -- support mean the Obama economies killing Americans right now at home.
And other struggling to get through the week themselves and now to impose additional taxes is not the answer.
President -- well she's not wrong I mean we are getting nickel and -- six ways to Tuesday right at the same time now I get where the fairness factor comes in because.
If I go to this store Barnes & Noble I pay tax it by -- online I do not that's not there.
That that's exactly right there's two issues should have a level playing field should they brick and mortar retailer he had a penalty compared to an.
And the point of this bill is now have a level playing field compete hard but consumers make their choices.
But don't put our brick and mortar retailers this really brutal.
-- disadvantage that's number one number two.
Indeed this is about state rights local control this is not congress assessing attacks this is us.
Deferring to the states and localities where they decide yes or no on whether there's going to be a sales tax so -- -- -- -- concerns.
But if we're gonna remedy that with lowering the sales tax that has to be done.
In our state capitals and I -- great communities.
There wasn't -- today but resident Chris may I ask you point to that because many worry that -- sets precedent.
If we give this -- the right to tax and collect tax does that open the door for them to collect other taxes from other states.
Well I mean clearly right now states have that ability.
They can they can impose sales taxes as they wish so my question is -- the federal government even getting involved in this all together.
Is creating and other opportunities opening the door.
For the federal government to -- begin taxing the Internet Internet sells Internet transactions Internet usage although it's just creating the mechanism.
It's allowing government to encroach once again on a very vibrant part of our economy and it's actually the new frontier to great frontier right now -- our economy.
Ronald Reagan said government's view of the economy was that when it is moving you taxes with it keeps moving.
You regulate it and if it stops moving subsidize it where are we right now that's how I -- it.
Here's what here's my problem with that you know it's that fear -- -- a lot of folks here have but it just doesn't apply in this case.
If -- -- if there's a sales tax it's because of state or local community has -- that you can have your argument.
In my case back in Montpelier -- -- whether we should lower the sales tax the federal government has literally nothing to do with that.
But that taxes when that this assessed I gave up purchase certainly when -- -- -- buy something if it is something I get in Montpelier.
Or -- -- buy it online under state law I'm supposed to pay them the only difference is it's not collected.
Invite you retail rates of the federal government is not getting involved in this at all but it was -- this -- mistaken.
At that point you relying on the person who made the purchase to report that sales tax and we all know that that doesn't actually happen but tonight.
Grace and that's exactly right it was so it's not really collectibles even though it's a legally.
Even though we're legally I don't look so instead as a practical matter it's now we want to point we want to end marketplace fairness now is just.
Expanding the federal government's reach and -- -- creating these.
Pakistan -- called e-commerce tax collectors now what that is you know what -- and that's you know but has the states can't -- their -- tax codes.
I mean is that what we're here to -- the federal government's role is to protect.
The American people and defend the American people in this case is just reaching into their pockets allowing governments to reach and there's not a nickel and tell us.
-- go into the federal government and we -- let's let's talk about what really isn't bill.
There's not one red cent.
In this bill we going to the federal government it would go to Vermont if we have the sales tax and go to George if you have sales tax that's it.
And the only thing that the let's -- California.
-- from Vermont than that.
And retailer will collect that tax committed to Vermont and with the software that into the the court system real thing in Finland in and there's -- Williams and consumers.
And these -- in the last final question -- are we ignoring the Internet though as a part of our economy if we're not including it in everything else that we we mean unfortunately we tax a lot of things in this country and like I said I don't think they're going away anytime soon so are we.
Ignoring the Internet saying it is not even really part of the economy doesn't deserve to just.
The government has seen rule.
Put it the Internet has done amazing things for our economy taxing it will only make it worse it would only slow it down slower economy down.
Why is leveling the playing field always raising taxes -- we level the playing field down for once and empower the consumers well if you give him wanna and -- got autograph so you're saying you haven't -- -- -- to lower or eliminate the sales and that's.
Is it -- start at the end of the day the question is will consumers pay more in taxes for less under this legislation they will pay more.
It does nothing to create jobs for -- working him.
Congressman Peter wells congressman Tom graves this is -- -- Excellent debate I can tell you I'm sitting in the middle on the fence on this so it was a pleasure to hear about your -- thank you thanks -- thank you.
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