A new Tax Increase in Texas

Gee. I thought elections counted.

Ok. Texas needs more revenue. One option is to CUT SPENDING. Isn't that what the November 2010 elections showed?

Anyway, the Texas House has passed HB 2403 which, in a nutshell, will require all business in the US to collect Texas sales tax for any product/service sold to a person in Texas. This is a direct contradiction to Quill Corp v North Dakota, which is a Supreme Court ruling, that basically says the company must have a physical presence in the state in order for the state to require the company to collect sales taxes.

What this bill says is that any company that 'advertises' in the state will have to collect sales taxes. Humm. Talk about a business downer. No more advertising dollars in Texas, eh?

So, I wrote both my governor and state senator.  Here are my letters:

To Governor Perry:

Sir,

I am concerned about HB 2403 which seems to me to be a tax increase on the citizens of Texas.

As I read the contents of this bill, I believe the intent of the legislation was good but the desired results are not. Plus, if the Supreme Court’s decision in Quill Corp v North Dakota indicate that a business must have a physical presence in the state, then, in my opinion, this legislation is,in fact, unconstitutional and will result in expensive lawsuits for the state.

I firmly believe that should this legislation arrive on your desk in its current form, you are obligated to veto it, not only because it is a de facto tax increase on our citizens, but also because I believe it to be unconstitutional.

Sincerely,
Robert Goehring 

To State Senator Kel Seliger:

Sir,

I am concerned about HB 2403 which seems to me to be a tax increase on the citizens of Texas.

As I read the contents of this bill, I believe the intent of the legislation was good but the desired results are not. Plus, if the Supreme Court’s decision in Quill Corp v North Dakota indicate that a business must have a physical presence in the state, then, in my opinion, this legislation is,in fact, unconstitutional and will result in expensive lawsuits for the state.

I believe this bill should not be presented to the Governor in its current form. It is a de facto tax increase for Texas citizens and, in my opinion, will be overturned as unconstitutional after a lengthy and expensive court battle.

I trust you will perform your duty and do everything in your power to prevent this bill from becoming law in our state.

Sincerely,
Robert Goehring

 So tell me. Am I wrong here? Should the Texas Congress be able to dictate to a business in Florida (with no physical presence here) to collect sales tax on the citizens of Texas? That would mean that any business in Texas would also have to collect sales tax for the state, county, and city of New York for any of there citizens who happen to buy something from here. Do you realize how many different tax rates there are in the United States? Last time I looked, there were something like 32,000 different rates (state, city, county, local) that businesses would have to update DAILY because, guess what, there is no control on when the rates can / will change.

This is bad for Texans in general and bad for Texas businesses in general. Don't let it happen.

And what the hell happened to the Conservatives in our state legislature!!!!????