The effort of states to close their budget gaps by taxing online retailers is reaching fevered pitch. Congress has passed a very ironic resolution stating it is against such efforts.

The sheer stupidity of government is no more clear than when it comes to the effort of state governments to tax internet retailers, particularly large ones. The idea of states is to force these big retailers to collect sales tax on sales made in the relevant state and then submit the payments. 

California, for instance, is trying to pass legislation to do this now. It has tried before, but the Governator always vetoed the bills. With him out of the way and Tax’em Jerry Brown back in office, there is little doubt this years bill will be passed into law soon. 

How can California pass such laws when the companies in question are not in the state? The politicians argue that any affiliates the sites might have in the state are enough to create jurisdiction. Well, guess what the companies do? They terminate those affiliates. In California, this would mean the termination of 10,000 affiliates. In short, the state government would not get the sales tax it desires and would also lose the income tax it collects from said 10,000 affiliates. And people wonder why our country is in trouble!

So, Congress has sort of waded into the mess and noted it is against the efforts of the state. A resolution known as the “Supporting the Preservation of Internet Entrepreneurs and Small Businesses” was passed. Now here comes the real irony of it. The sponsors are U.S. Representatives Dan Lungren (R) and Zoe Lofgren (D). 

They are representatives from…California!