backtop


Print 51 comment(s) - last by notyourmamma2.. on May 11 at 9:23 PM

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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

ffs
By AssBall on 5/7/2013 4:34:45 PM , Rating: 2
It is not a revenue problem.

It is a spending problem.

You don't cut off you foot to stop your arm bleeding.




RE: ffs
By tayb on 5/7/2013 4:47:15 PM , Rating: 2
What are you even talking about? This bill doesn't collect federal sales tax. No such tax on consumers even exists. This is a bill that will force online and mail orders to charge the same state taxes as brick and mortar retailers. That is, if I go into Best Buy and buy a television in Dallas, TX for $1,000 I pay 8.25% sales tax. If I logon to Newegg and buy a $1,000 TV I don't pay sales tax. The money goes to the states.

I don't think it will actually help brick and mortar stores compete but I don't disagree with the reasoning behind the bill. If you oppose sales tax for items purchased you should oppose it globally not just for online or mail order stores.


RE: ffs
By chick0n on 5/7/2013 8:16:31 PM , Rating: 1
what u mean it's not a spending problem? how many States are not running with a HUGE freaking deficit ? Why? Cuz they love spending on completely useless shit, pay their "friends" 100K a year for doing nothing. etc etc.

Reason why Brick n mortar retails die cuz they overcharge EVERYTHING. I mean sure they have to pay rent and everything, but charging the same TV for 100% more is NOT something I considered as "fair."

I truly hope shitheads like Worst buy just die and become part of the history.


RE: ffs
By MadMan007 on 5/7/2013 11:37:06 PM , Rating: 2
Or because they make budgets that project out for 5-10 years, and 5-10 years ago the revenue estimates didn't factor in the amount of e-commerce. I'm not saying it would balance budgets, but it would clearly have an impact on revenue estimates that didn't account for the amount e-commerce and other intrastate commerce has grown.


"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki