Internet tax would create jobs, study says, but with a catch

A federal Internet sales would tax create jobs in Ohio, a lot of them.

So says a recent study, Pro-Growth Tax Reform and E-Fairness, which reports the state would see an estimated increase of 46,600 jobs and a 2.38 percent increase in the Gross State Product over the next 10 years if Congress passes the Marketplace Fairness Act – or other “e-fairness” legislation.

Economist Art Laffer, considered by some the father of supply-side economics, did the study with co-author Donna Arduin on behalf of Let Freedom Ring, a nonprofit, nonpartisan public policy membership organization focused on promoting constitutional government, economic freedom and traditional values.

The Marketplace Fairness Act — or “e-fairness” legislation — would require online retailers to charge, collect and remit sales taxes for all purchases based on where a customer lives. Brick-and-mortar stores and online retailers already collect sales taxes in states where they have a physical presence.

Supporters of the tax say it levels the playing field by requiring all sellers to abide by the same rules, eliminating the advantage customers have by buying goods from outside the state.

Something that is seldom mentioned is that buying from out of state means the consumer pays shipping charges instead, which could be more than the sales tax. Wise consumers compare total costs — product, taxes, shipping — and availability before deciding where to buy an item.

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