Posted: 6:53 am Thursday, July 3rd, 2014

David Perdue would not vote for Internet sales tax bill 

By Daniel Malloy

WASHINGTON — For months, the Jack Kingston campaign and various conservatives have attacked David Perdue for supporting an Internet sales tax.

In an interview with the AJC on Wednesday, Perdue said they have his position all wrong.

The controversial Marketplace Fairness Act, which has passed the U.S. Senate and not received a vote in the House, would empower states and municipalities to collect sales taxes from e-tailers that do not have a physical presence there. Taxpayers now are supposed to report the purchases and pay up on their tax returns, but few do.

The bill has the backing of many local leaders — including Georgia Gov. Nathan Deal — and brick-and-mortar retailers. Some conservative groups have denounced it as an effective tax hike.

Perdue has been complimentary of the concept. Take this answer in January at a candidates’ forum put on by the Georgia Municipal Association, where Perdue appeared to break from the pack and endorse the bill:

“Being the only retailer up here, I can tell you – I’ve seen both sides of this conversation. Look, one of the things the federal government does – or should do, frankly – is make sure all players in our free enterprise system play on an even playing field. Here’s where, because of technology, they’re not. Frankly, I think whether you have brick-and-mortar, or Internet sales, we should have the same rules apply to both. That’s from a retailer.”

The crowd applauded, Perdue recalled Wednesday. The AJC and other media reported he had endorsed the bill. Perdue said that was based on a truncated answer:

“What I really believe is I think the FairTax solves the problem because it creates a level playing field. What I was saying was, as a retailer I support that. So the advantages of the FairTax can be seen in several different places, and I think that’s one of ‘em.”

The FairTax is a national 23 percent sales tax to replace the income tax that both Perdue and Kingston support. So he would not support the Marketplace Fairness Act?

“No. I think this is where they take an issue and break it down and take it out of context. The way to solve the imbalance between Internet and brick and mortar is the FairTax. …  That’s the problem — they try to solve these things incrementally. [The FairTax is] a holistic solution.”

Perdue contends, then, that Kingston’s “tax increase” attack is bogus if it’s based entirely on the debunked Macon Telegraph “revenue” comment and on the Internet sales tax, which he says is not a policy difference at all.

On the similar question of closing tax loopholes in the way that Saxby Chambliss has sought to do, Perdue told Jim Galloway last week that he now believes the only cure for the tax code is to blow it up:

“If we try to incrementalize our way to solve the real problem with our tax code, we’re not going to get there. I didn’t start here, but I’ve been educated over the last year.”

Lobbyists and PACs, he said, have too much influence to allow a small-step approach.

26 comments
ChuckBurns
ChuckBurns

It replaces the income tax and all pay roll taxes. That's where the 23% comes from. You get to keep all of your income. No taxes are paid until you actually buy something that is new. Used items are not taxed

NOlongerRepublican
NOlongerRepublican

There is no reason internet based sales should not be taxed like brick and mortar sales. NONE. Why should one business have an advantage over another? Congress should fix that but like everything else...Congress says no. I do believe we have the worst bunch of idiots in Congress that has ever been elected. Kingston has been there 20 plus years and has nothing to show for it, so now Georgians are pushing to give him a bigger job and more money...for what? I am not a Perdue fan either but at least he is a different person and might actually try to do something, maybe. Kingston will be a total waste of a senator like we have now in Chambliss and Isakson.


As for the fair tax...it sounds all well and good with a name like fair tax...but it is anything but. Plus its time has come and gone. It is dead and will never go anywhere. How about we come up with a discussion on something that could actually help instead of rehashing old arguments that aren't going to change anything?

findog
findog

I blame Newt and the revolution for this

They set up the internet less sales tax to help the industry get started in the mid 90's

Now we can't have them pay simple sales taxes [which can be done by zip code] because ending a temp tax cut is RAISING TAXES

EdUktr
EdUktr

Purdue is too far behind in the polls for this to make a difference, Jim. Nor will stirring the pot on the Republican side aid your Democrat candidate to any appreciable degree.

Hey, has Michelle Nunn released the rest of her tax records yet?

CuriousPrime
CuriousPrime

So Clarence and David want to blow up the taax code?  Like most GOP plans, they come up with a sound bite solution to start something, but have no clue on how to build something constructive.

Jefferson1776
Jefferson1776

22 years in Washington --  how much is enough ?  Keep sending Kingston back, same result come out.

The_Centrist
The_Centrist

Michelle Nunn would oppose a Fair Tax because it would result in her paying more than she does now with her $300K plus family income.

Speaking of Ms. Nunn, the Peach Pundit posts a letter to her from the Federal Election Commission (FEC) demanding more information on her public disclosures under the threat of an audit.  Now this is probably fairly routine, but imagine what this blog would be about if that letter went to a Republican.

http://k007.kiwi6.com/hotlink/bgfyz81x0x/nunnsenate.pdf?utm_campaign=Peach+Pundit+Daily+-+07%2F03%2F2014+Edition&utm_source=Signal&utm_medium=email

hamiltonAZ
hamiltonAZ

Sometimes, you have to wonder just how much of this stuff they sling do they really believe.

DS
DS

A truly fair tax would be progressive and based on both wealth and income. Read Piketty's book, Capital in the 21st Century, for a full explanation.

The so-called "fair tax" would be a recipe for disaster, especially considering the current economic and population trends described in Piketty's book.

LpV
LpV

Do away with ALL federal, state, and local income taxes.  Have a 10% State sales tax, a 20% Federal sales tax, and a 2% local sales tax.  That should be enough to run all three government entities

DS
DS

This doesn't make any sense.

Internet sales are taxable now, at rates set by state and local governments. Only trouble is, retailers aren't required to collect the tax and turn it over. Customers are supposed to do that voluntarily. Most don't, so the Marketplace Fairness Act would require internet retailers to collect the tax.

Georgia already passed something like this. Now Amazon collects sales tax for shipments to Georgia and sends that money to the state. The MFA would make that happen in all states.

Notice that we're talking about state and local taxes here.

But Perdue has changed the subject and started talking about Federal taxes. He wants to replace the Federal income tax with an enormous national sales tax. This would be in addition to state and local taxes.

He was asked a simple question, but he dodged the question and started talking about something else. Strike one. And his proposal for something else would be a crushing burden to the poor and middle class. Strike two.

Ralph-43
Ralph-43

Perdue and Kingston will both argue for "No Taxes" until they are blue in the face.  Neither cares about the U.S., Georgia, or local governments and the citizens of the United States.  Yawn, yawn, yawn.  We already knew that.  A few people will vote for one of these jerks because they don't like to pay taxes either.  Who does?  The problem, of course, is what happens to the country and citizens when there are no roads, no hospitals, no courts, no internet, no phone, no airlines, no police, no military, no stock exchange, no banks, no schools, etc.  Vote for Syria and modern Iraq if that is what you want - otherwise better consider the alternative and pay your fair share for maintenance.

honested
honested

So both republiklan Senatorial candidates still cling blindly to the absurd and discredited notion that we can run a government without doing anything to pay for it.

Yet they refuse to charge expenses to the 'states' who exist due to our massive military expense.

Is there any test for Senate qualification where basic sanity is reviewed?

SouthGeorgiareader
SouthGeorgiareader

Perdue wants it both ways.  The best solution now is to allow the sales tax on internet sales and forget about the Fair Tax.  Those in power now would use the Fair Tax to protect fat cats with big exemptions and let the middle class and poor pay the 23%.  I don't trust Congress to do the right thing---they know we need tax reform but won't tackle it for fear of losing political power.  Another good argument for term limits.

CherokeeCounty
CherokeeCounty

And anyone who is in favor of the FairTax, which would shift even more of the tax burden to the middle class, doesn't deserve to be elected to anything.

The_Centrist
The_Centrist

@EdUktr - I'm not convinced Perdue is too far behind.  It will be a very light turnout election and may hinge on the Atlanta metro area turnout.  High school graduate Handel supporters have mostly gone over to Kingston via polling, but will they actually vote?  TV ads will get hot and heavy now, and something might work to the advantage of one of them.

CherokeeCounty
CherokeeCounty

her paying more than she does now

Actually no, because of the exemptions to the tax, she would probably pay less.

Do you think that Neal Boortz is such a big fan of the FairTax because it would require him to pay more taxes?

Jefferson1776
Jefferson1776

@The_Centrist  Anyone with half a brain and an understanding of fairness would oppose the so called "Fair Tax' .  How can folks only care about themselves and so little of others ?

DirtyDawg
DirtyDawg

Ralph's right...at this rate we suck ourselves into one of this 'black holes' and end up like the movie 'Road Warrior'...on an endless loop.

honested
honested

@SouthGeorgiareader 

As written, the unFair Tax excludes most of the annual expenditures individuals like perdue and kingston make from taxation.

EdUktr
EdUktr

@CherokeeCounty

Of course, when an idiot like you publicly opposes the Fair Tax -- it only generates more interest in it and in the fact 45% of earners pay no federal income tax.

The_Centrist
The_Centrist

@Jefferson1776 - Good point - folks with half a brain pretend the Fair Tax is unfair because they would likely pay more than under our current system that is subject to so many loopholes, abuse, cheating, misses the underground economy, and employs so many accountants/ tax lawyers to exempt the truly wealthy.

CuriousPrime
CuriousPrime

@EdUktr @CherokeeCounty There is a reason why 45% don't pay federal or state income tax.  Most don't make that much money because they are to yooung, too old, orjob starved.  Besides, most of whom would not be impacted by an internet sales tax as they are by tax on goods.

honested
honested

@EdUktr @CherokeeCounty 

Does this suggest you would be willing to see a rewrite of the unFair Tax to include ALL real estate transaction, all securities and insurance transactions, all sales of businesses, in general ALL exchange of money for anything?

Didn't think so.

The fair tax is a lie.

CherokeeCounty
CherokeeCounty

I'm honored, I guess, that you think that anyone would actually change their mind about the tax either way based on my opinion.

Nobody_Knows
Nobody_Knows

@EdUktr @CherokeeCounty 

"......  it only generates more interest in it"

So much so that the Republicans have  controlled the House for 16 of the last 20 years and not one bill passed regarding the Fair Tax


LOLOLOLOLOLOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


So speaking of idiots you be the first to let us know when the Fair Tax is more than just talk