Internet Sales Tax Could Crush Small Businesses

by Ron Paul

One unique aspect of my homeschool curriculum is that students can start and manage their own online business. Students will be responsible for deciding what products or services to offer, getting the business up and running, and marketing the business’s products. Students and their families will get to keep the profits made from the business. Hopefully, participants in this program will develop a business that can either provide them with a full-time career or a way to supplement their income.

Internet commerce is the most dynamic and rapidly growing sector of the American economy. Not surprisingly, the Internet is also relatively free of taxes and regulations, although many in Washington are working to change that. For example, earlier this year the Senate passed the Marketplace Fairness Act, more accurately referred to as the national Internet sales tax act. This bill, which passed the Senate earlier this year, would require Internet businesses to collect sales tax for all 10,000 American jurisdictions that assess sales taxes. Internet business would thus be subject to audits from 46 states, six territories, and over 500 Native American tribal nations.

Proponents of the bill deny it will hurt small business because the bill only applies to Internet business that make over a million dollars in out-of-state revenue. However, many small Internet businesses with over a million dollars in out-of-state revenues operate on extremely thin profit margins, so even the slightest increase in expenses could put them out of businesses.

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Nullification is no mere “Constitutional Right”

As Thomas Jefferson made clear when he wrote the Kentucky Resolutions in 1798, Nullification is not something that’s permitted to the people of the states by any document – it’s their natural right to resist oppressive power. From this, one could easily posit that this right is one that the federal government is barred from infringing under the 9th Amendment.

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people

More on the 9th in a future power. Here’s Jefferson:

“that every State has a natural right in cases not within the compact to nullify of their own authority all assumptions of power by others within their limits: that without this right, they would be under the dominion, absolute and unlimited, of whosoever might exercise this right of judgment for them”

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From Drugs to Taxes, New Amendments Won’t Make a Difference

From talk show hosts to taxpayer defense organizations, a lot of people out there are justifiably sick over how our government is operating.  Many of them have proposed new Constitutional Amendments, either to reign in the power of the federal government, or to force it to exercise its constitutionally delegated powers and responsibilities.  It occurred to me while driving (I do a lot of thinking and praying behind the wheel), that the things these groups propose are why the Constitution was written in the first place – to define yet limit the powers of the federal government.

Congress, presidents past and present, and the Supreme Court have disregarded their Constitutional responsibilities and limitations on their authority for over a century.  If they fail to respect the Constitution and all the Amendments currently included in it, any proposed new Amendments, even if they got past 290 Representatives, 67 Senators and 38 state legislatures, will do nothing to restore one iota of our God-given freedoms.

In the year 1919, the 18th Amendment to the Constitution was ratified, which stated:

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