Thursday, May 2, 2013

Mind your own business!

As a business guy I hate fairness, I don't like equality, I hate fair playing fields because they are always only fair to the ones who get to decide what's fair. Enter the Market Fairness Act, which has a real potential of being passed unless you reader write your senator of course and protest the act as aggressive and sloppy legislation designed to harm the consumer aka you and me for the benefit of mega-corporations.

Check it out sometime, Even if you reader are an anti-Capitalist and so you probably wouldn't believe a word I say towards that Capitalism doesn't cause the suffering of the world, so the paragraph above may come off as odd so I suggest you check out the Market Fairness Act for yourself.

In short the pro MFA side says that Brick and Mortar stores are benefited by this act because now taxes are flattened across the board. So for example, the current legal system says if you bought a sprocket from a retailer in New York and you lived in New York it would cost 7 dollars and 1 dollar of that would be taxes. If you bought the same product from NJ you could pay 6 dollars if you bought it online, usually with free shipping. Okay that's fine but the reality is that the odds are the retailer you bought it from locally was a part of a major conglomerate that has at least one store in nearly every state. These are not the traditional Brick and Mortar, the real Brick and Mortar was that obscure store you bought it from in NJ that swear by their quality to the point where they even sell their own emblem printed T-shirts so you can support their store. Being taxed for something from a state you do not live in is presently illegal since a result of it is being understood as taxation without representation.

The MFA is designed by incumbents using politics as a legal avenue to prevent themselves from being disrupted and the Government loves the idea of forcing the consumer to be restricted in where they can make purchases since they can tax it easily and legally. The reason why people will be forced to buy within their own states is because producers for small stores that don't have a store in your state will -if this act is passed- have to file taxes for any State they ship to, there are over 9000 different tax jurisdictions, for example food in one tax jurisdiction may be considered a grocery but in another it counts as a prepared meal.  The rates each are taxed further alter based on the local, city or state. The cost from this on these up and coming real Brick and Mortar online stores in time and lawyers becomes a reason to either close up shop, move out of the country or sell within your state; where they are run out of business by local mega stores who can eat production costs to price the small time businesses out, like they have been doing for years. While pricing wars are in the short term good for the consumer the reality is that the prices are artificially low and once competition is gone or regulated the prices become artificially high as mega companies work with one another in government sustained oligopolies like cell phone, internet and insurance companies.

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