Internet Sales Tax Unconstitutional – Open Letter to Congressman Hall

An Open Letter to Our Texas Delegation in the House

May 7, 2013

Honorable Ralph M. Hall
2405 Rayburn H.O.B.
Washington, DC 20515-0001

News Headline: Senate Passes Internet Sales Tax Bill

Regardless how you look at it, it’s a tax bill and I see three enormous problems.

  • This bill, if passed, will place enormous costs on businesses doing business on-line, thereby effectively killing internet commerce for small businesses.
  • State sales tax is not the purview of the federal government and this bill opens the door to collection of sales taxes by the IRS. Do we either want or need further expansion of federal government?
  • It’s unconstitutional, according to the U.S. Constitution, Article 1, Section 7 that states:

All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.

This bill ORIGINATED in the Senate and is, therefore, unconstitutional.

Very large enterprises that do substantial on-line sales, companies like and Walmart, want this bill passed to eliminate competition by small companies. J.P. Morgan InternetSalesTax_v2would agree: this bill eliminates “harmful competition”. When did competition become harmful?

Congressman Hall, I ask you to oppose the Internet Tax Bill and I ask you to encourage all of our Texas Delegation in the House to oppose the Internet Tax Bill.

I remind you and your fellow Texans that such a tax was ruled unconstitutional by the U.S. Supreme Court in the 1992 ruling on Quill Corp. v. North Dakota.


Rockwall County TEA Party

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4 thoughts on “Internet Sales Tax Unconstitutional – Open Letter to Congressman Hall

  1. Read article one section 9 paragraph 5 of the United States Constitution.
    “No tax or duty shall be laid on articles exported from any state”

      1. I don’t think this is actually a bill for raising revenue. Most states already have laws that say their citizens are responsible for paying taxes for items purchased out of state. But they don’t have the ability to collect that tax. This bill makes it possible for other states to force you to collect their taxes.

  2. You are correct: this bill is not, at this time, a federal revenue bill. However, it opens the door to a national sales tax by involving the federal government as arbiter and final authority on state sales tax.

    As mentioned in the article, SCOTUS ruled in 1992 that one state cannot asses sales tax on a company in another state. I also refer you to the U.S. Constitution, Article 1, Section 9, paragraph 5: “No Tax or Duty shall be laid on Articles exported from any State.”

    The matter of states collecting sales tax is solely the purview of the several states. However, this bill effectively nullifies, weakens at best, the Tenth Amendment.

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