Lawmakers face a sales tax test

Posted 7/5/18

Lawmakers performed the unexpected last week. Both House and Senate called Dominion Energy’s bluff and killed the unpopular Base Load Review Act. They also cut SC Electric & Gas rates from 18% …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Get 50% of all subscriptions for a limited time. Subscribe today.

You can cancel anytime.
 

Please log in to continue

Log in

Lawmakers face a sales tax test

Posted

Lawmakers performed the unexpected last week. Both House and Senate called Dominion Energy’s bluff and killed the unpopular Base Load Review Act. They also cut SC Electric & Gas rates from 18% to less than 4%.

House Speaker Jay Lucas said the law let SCANA execs “commit fraud while building fortunes on the backs of hardworking and honest customers.”

Now our state is in for a windfall due to a US Supreme Court ruling we believe was right.

In a 5-4 decision, the court said states have the power to force internet retailers to collect sales taxes for them. It’s the same constitutional principle that allows them to turn local retailers and other business owners into tax collectors.

You may agree that government should have this power because it is the most efficient way to raise revenue for government services. On the other hand, you may believe there are better ways for government to raise revenue to pave our roads, provide public safety and the hundreds of other services are public officials provide us.

What’s at stake here is billions of dollars a year in sales taxes internet retailers and their customers have been able to avoid paying. This has been a free ride, critics say, that puts local businesses at a disadvantage because they have to charge their customers whatever the sales tax is in their community. That varies widely. Some large urban states charge twice what we pay in Lexington County.

We have done more of our shopping online, attracted by low prices, wide selection, convenience and no sales taxes.

The Supreme Court decision at least levels the sales tax playing field for all businesses, even local mom-and-pop stores.

It rewards states which complain they are losing billions of dollars in annual tax revenue.

But here is one glaring down side to this decision: How will state officials use this money?

Lets hope our lawmakers use these billions of dollars to repair our roads, not to pave every driveway in Florence County?

JerryBellune.com

Comments

No comments on this item Please log in to comment by clicking here