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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 Ammohunt on 5/7/2013 5:19:15 PM , Rating: 3
quote:
The idea that taxation isn't a factor in buying decisions is pure garbage.


Never said it wasn't a factor, i implied that it wasn't the primary factor like the above article would lead you to believe. You actually think people wouldn't shop locally more if the price and selection were inline with online stores? For computer components of which i am a large consumer of, i have a single choice 70 miles away that being Microcenter. Who's prices are significantly beyond newgg+shipping prior to taxation; oh and their selection sucks. Large etailers can afford to trim profit margins below what retail can primarily because of the sheer volume of product they move, Its called economy of scale. The main problem with this tax scheme is not so much the added cost of the taxes but the added cost of bureaucracy needed to managed the thousands of different tax codes spread across states and home rule municipalities within those states.


RE: Lies!
By mcnabney on 5/7/2013 10:46:37 PM , Rating: 2
I would totally disagree with you about Microcenter vs Newegg.

I just priced out a new PC build. Microcenter had Newegg beat on every component except the GPU - and that was only $10. So I could save $110 at Microcenter on a $1200 build. However, I am going to have to pay about $90 in sales taxes at Microcenter - making deal much closer in price. Once you factor in gas and drive time - it is about even or maybe a bit in Newegg's favor. Sales tax is clearly punishing Microcenter.


RE: Lies!
By anactoraaron on 5/8/2013 12:26:06 AM , Rating: 2
Not only that but microcenter purposely prices their i3 and i5 unlocked "k" parts well below newegg (even says that on the ads). Price a 3570-k with microcenter vs newegg... then take a look at the motherboard combos at microcenter ($40 off motherboard with cpu purchase that's already $30-$40 cheaper than newegg).

Not that microcenter always beats newegg, but it pays to shop around.


RE: Lies!
By lagomorpha on 5/8/2013 6:14:07 AM , Rating: 2
Microcenter will match newegg prices as well (normal prices not the ones that show up in your email or I think the shellshockers).

You're right about the K series CPUs though, the other week I picked up an i7-3770k at microcenter for what newegg was charging for an i5-3570k.


RE: Lies!
By tastyratz on 5/8/2013 9:49:34 AM , Rating: 2
before online sales we had mail order companies.

The difference here is convenience, that is what we are competing with and that carries a cost advantage no taxation could ever compare to. This might provide some incentive but there will always be a need for both sources. Sometimes you can't wait for shipping and sometimes you cant drive the distance to find a place. non strategically placed establishments are the ones that will continue to suffer in time.


RE: Lies!
By Ammohunt on 5/9/2013 12:08:19 PM , Rating: 2
I sit corrected about microcenter. i am the luck guy today that has a failing hard drive in his laptop i priced SSD's at Microcenter because i need it today and with taxes its still cheaper than newegg. Learn something everyday!


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