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Ron Paul: Chaffetz will hobble Internet commerce with sales tax bill

 It is undeniable the Internet is the greatest technological advancement of our time. The Internet has brought information, education, prosperity and wealth to billions of people across the world.

This is partly due to the Internet remaining one of the few areas of the economy the government hasn't yet stifled with high taxes and overregulation. Yet some in Congress want to change this. Some politicians, angry that Americans dare to freely exchange goods and services across borders without giving the government its cut, want to halt all this innovation with new taxes and regulations.
One of the worst offenders of all is Rep. Jason Chaffetz of Utah's 3rd District. Despite claims of wanting to limit government, Rep. Chaffetz is launching an all-out attack on the Internet! Last week, he introduced legislation requiring small businesses in Utah that sell products online to collect and remit sales taxes for the over 9,700 tax jurisdictions in the United States. Talk about a headache for the small Internet retailers!
Current law only allows states to require businesses to collect sales tax if the business has a physical presence in that state. But now, greedy state governments are looking to Washington to turn federalism on its head and require businesses that are not even in their state to become their tax collector. So much for "No Taxation Without Representation!"
Proponents of Chaffetz's Internet sales tax argue this is supposed to help small businesses. Throughout my time in Congress, however, I learned in order to see the true intent of legislation, you must look at who supports it. And the biggest supporters of the Internet Sales Tax are big-box retailers.
But, why would a company want to impose greater regulations on itself? Well, the big guys can afford it. Thus, the Internet Sales Tax is simply a way for large companies to use the strong arm of government to put their smaller competitors out of business, all with the help of Rep. Chaffetz and the federal government.
Rep. Chaffetz's disdain for the Internet doesn't stop there. He sponsored the so-called Restoration of America's Wire Act to ban Americans from visiting websites that allow individuals to gamble online, making it a federal crime to play poker online, along with outlawing online lotteries and other games.
Now, I personally don't gamble. But do we really need the federal government censoring access to the Internet in the United States? That sounds like a very dangerous precedent and is something U.S. politicians routinely decry totalitarian regimes for doing.
His iGaming Ban also voids existing state laws allowing Internet gambling. Those concerned that legalized gambling in one state will undermine Utah's law forbidding Internet gambling should ask themselves, who is more likely to take steps to ensure they are not violating Utah's laws: an online casino run buy a legal business, or one run by an offshore criminal cartel?
Again, examining who supports this legislation will show us the motives behind it. RAWA is supported by one Las Vegas billionaire casino mogul, who doesn't want Americans to be able to gamble without paying to stay at his resorts. These are the same resorts where Rep. Chaffetz has stayed in while visiting Las Vegas.
So, whether it is with the Internet sales tax or allowing the federal government to censor your access to the Internet, Rep. Jason Chaffetz is quickly proving he's no friend to the Internet or limited government, despite his rhetoric. I encourage all liberty-loving Utahns to give Rep. Chaffetz's office a call and ask, what does Jason Chaffetz have against the Internet?
Ron Paul is a former congressman from Texas and a former presidential candidate.
 
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