Lansing - MSU students chanted “No Internet tax” in front of the state Capitol Tuesday to voice concerns about legislation that would organize efforts to collect online sales taxes.
Ten students, including members of MSU Young Americans For Freedom, met at the Capitol to protest legislation that would add Michigan to the Streamlined Sales Tax Project.
The project will bring states together to create an Internet sales-tax collection system. But the protesting students say the legislation is unconstitutional and could lead to privacy violations and economic setbacks.
“The economy is already in a downturn, and we’ve seen consumer spending decrease,” said Max McPhail, chairman of MSU Young Americans For Freedom. “The way to boost it is not by adding a tax onto something else. It just makes it more expensive and less chance that people will buy.”
McPhail said his organization e-mailed fellow students to inform them of the to the issue.
Some students such as Craig Burgers, a no-preference freshman, responded by participating in the rally.
“I really feel betrayed by the Republican Party that they are going to vote for this and it will pass,” Burgers said. “I think the last thing we need is a new tax.”
The legislation passed in the state House last week, and in the Senate Finance Committee Tuesday. Its next stop will be at the Senate floor, before reaching approval by Gov. John Engler, who supports the bill.
“Clearly privacy and financial security issues are important,” said Matt Resch, a spokesman for Engler. “That’s why Michigan needs to be at the table when these decisions are made.”
Resch said the legislation doesn’t set a method for collecting the tax, but enters Michigan into discussion with other states to make that determination.
“When the system is created, we want to be there on behalf of Michigan citizens, taxpayers and businesses to see that these concerns are brought out,” he said.
But protest participant Kathy Savard, an international relations sophomore, said 72 percent of Michigan businesses include, or plan to include, the Internet in operations.
“The last thing we need is more taxes, especially on the Internet with infinite industries that are springing up,” Savard said.
And Savard said the tax project won’t work because not all states will agree to take part in discussions.
“California, New York and New Jersey won’t enter into this and won’t have this tax,” she said.
“An infinite amount of industries for the Internet will want to go to California or New Jersey or New York.
“They won’t want to be here in Michigan.”
Although some students are voicing concerns with the proposal, Jason Ahrens, chairman of the MSU College Republicans, said he supports Engler’s view.
“There needs to be closure on the issue,” Ahrens said. “Either you do it one way, or the other. There shouldn’t be any variance between different states.”
And as far as economics are concerned, Ahrens said the students have no need to worry.
“The money is going back into the economy one way or another,” he said. “A lot of people like to buy online because in some situations there are no sales taxes.
“But it is just a fairness issue.”
