There are potentially horrific consequences of this misleadingly labeled tax law. Anyone who bought any item from out of state could be hit with tax bills for purchases made years before the passage of the law.
Beaumont, Texas (PRWEB) June 06, 2013
The Marketplace Fairness Act of 2013 (HR 684), the so-called online sales tax legislation now pending in the U.S. House of Representatives, is "outrageously unfair and un-American," will have financially devastating consequences for American businesses and investors, and potentially result in citizens being forced to pay retroactive sales taxes on purchases they made years ago, stated Michael Fuljenz, President of Universal Coin & Bullion (http://www.UniversalCoin.com) of Beaumont, Texas.
"There are potentially horrific consequences of this misleadingly labeled tax law. Anyone who bought any item from out of state could be hit with tax bills for purchases made years before the passage of the law. Businesses could face the burdensome expenses and time of massive record keeping and being simultaneously audited by dozens of revenue-hungry states and even Indian tribes," said Fuljenz.
Fuljenz’s concerns with the impact this bill may have, come after meetings in recent weeks to discuss the unintended consequences of the so-called Internet tax bill with U.S. House Speaker John Boehner; former Louisiana Congressman Jimmy Hayes; former United States Mint Director Philip N. Diehl and others. He also explained his concerns about the legislation during a recent meeting of the Board of Directors of the Industry Council for Tangible Assets (ICTAonline.org), a national trade association for the rare coin, currency and precious metals industry.
"As a small business owner, I may now be severely limited in doing business in some states because I could be swamped by paperwork, be subjected to hundreds of taxing authorities' demands for records, audits and other demands. The time, expertise or legal ability to respond or defend against these issues would be prohibitive for me and other small, lower-margin businesses."
Fuljenz points out that nearly every news story about the legislation incorrectly refers to it as an Internet tax bill.
"The word, 'Internet,' does not even appear in the bill. The legislation approved by the Senate and now before the House actually authorizes taxes on every kind of interstate sales; by mail, phone, radio, television, Internet and any other method imaginable," explained Fuljenz.
"Because this legislation could even cover services, investors might be hit with taxes when they acquire or sell stocks, and even be taxed on their contributions to 401K plans. The states supporting this terrible legislation seem to believe they are entitled to have me and virtually all other businesses in the U.S. do their work as sales and use tax collectors without us benefiting from services or representation in their states. That is outrageously unfair and un-American especially since foreign sellers, such as those in Canada and China, don't have to comply."
Known as America's Gold Expert®, Fuljenz warned that buyers of gold, silver and other precious metals and bullion coins could suddenly face an additional five to ten percent increase in costs on many purchases they make because of sales taxes.
"Many people have precious metals which are eligible for inclusion in their individual retirement accounts, but now future purchases could be subject to sales taxes. That means the initial costs for those investments could be significantly higher," he stated.
"We can't be competitive in many states if we have to charge more money. People won't pay an eight percent tax for an item on which we have only a one or two percent markup, such as gold and silver bullion coins."
Founded in 1994, Universal Coin & Bullion, Ltd. is a national leader in gold, rare coins and numismatic education. UCB President Michael Fuljenz is a nationally-known rare coins and precious metals expert. He is an award winning numismatic author of books and newsletters, a frequent interview guest on radio and TV news and personal finance programs, and a community leader in his hometown of Beaumont, Texas.
For additional information about Universal Coin & Bullion, visit online at http://www.UniversalCoin.com or call (800) 459-2646.