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February 12, 2018 | The Supreme Court Could Destroy the Economy in One Decision

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

In a 1992 case, the Supreme Court refused to require that mail-order retailers collect sales taxes from buyers in other states. For a quarter-century, that has given the online retailers a competitive advantage over brick-and-mortar stores. The States are broke and they are pushing to compel everyone online to collect sales taxes for them. We are looking at a complete nightmare. There are sites where people make arts and crafts and sell them. Suddenly, everyone would be legally required to file tax forms every month in all 50 states even notifying them they sold nothing to one of their citizens.

Legally, this will absolutely destroy the internet in one swift decision. Some states are particularly onerous and quite frankly even I would have to consider that people in certain States would have to be blocked from purchasing anything from us.

The only solution for us would be to simply close up shop in the USA and move everything offshore. There would then be no way for individual states to demand we collect their taxes from a foreign country.

When we moved to Florida, there was a mistake made in shifting our taxes on employees. The amount we failed to pay was $74. The penalty was $125 and then there was a late fee of $33. The tax owed with penalties and interest came to $236 on $74. Can you imagine simple mistakes by retailers can wipe them out! If the Supreme Court rules in favor of the States, all they care about is money. To hell with the economy. This is how the governments will destroy Western Civilization. There is never any consideration of reform. It is always scheming new ways to get more. They never solve the problem, so they constantly hunt for new ways to rob the people to pay their own salaries and pensions.

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February 12th, 2018

Posted In: Armstrong Economics

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