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House Speaker John Boehner now plans to deliver the bill to the House Judiciary Committee

The Internet sales tax bill passed with flying colors in the Senate, but the House of Representatives may prove to be more of an obstacle.

The Senate voted 69-27 in favor of the Internet sales tax bill (also known as the Marketplace Fairness Act) on Monday. The Marketplace Fairness Act would allow states to force out-of-state retailers to collect sales tax on Internet purchases -- even if the e-tailer has no physical presence in that buyer's state.

The legislation offers an exemption for merchants that generate less than $1 million in annual out-of-state revenue.

However, many e-tailers like eBay and Overstock.com oppose the new bill, saying that it would hurt small businesses. 

Those who are onboard with the legislation include Amazon, which is looking to simplify its U.S. state sales tax payments, and brick-and-mortar stores like Wal-Mart and Best Buy, which have complained about the unfair advantage online retailers have when it comes to the lack of sales tax collection in certain states. 

Also, state government's in need of extra revenue like the idea of the new bill. The California Board of Equalization, for instance, said it made $96.4 million in sales tax on internet commerce from September-December 2012, which is the first full quarter that the state started collecting.

Back in April, the Marketplace Fairness Act scored a big victory in a procedural vote of 74-20 in the Senate. It even won backing from U.S. President Barack Obama. 

While the Marketplace Fairness Act has had an easy time in the Senate, things are expected to change in the House of Representatives. The issue is that Republicans control the House, and they refuse to consider new federal revenue from eliminating tax breaks (which would be part of tax reform). 

House Speaker John Boehner now plans to deliver the bill to the House Judiciary Committee. 

Source: Reuters



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RE: Lies!
By Flunk on 5/7/2013 4:32:07 PM , Rating: 4
Why can't it be both?


RE: Lies!
By AssBall on 5/7/2013 4:38:10 PM , Rating: 2
Because tax overhead is ultimately paid for by the consumer anyway. That's why.


RE: Lies!
By Samus on 5/8/2013 1:58:40 PM , Rating: 2
Exactly. If there is any tax that makes absolutely no sense, it's sales tax. Imagine that. A tax on spending your money. Because already being taxed on your income isn't enough.

Sales tax is the only tax I don't really agree with. At least other taxes (travel, alcohol/tobacco, gasoline, etc) aren't as barbaric as taxing something like food.


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