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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 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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By Shadowmaster625 on 5/8/2013 9:05:46 AM , Rating: 2
As the brains of americans continue to devolve, it is clear that people have completely forgotten what this tax money is for. It used to be to provide services to the residents and businesses within the state. And so of course out of state sales were exempt since there was no logic in paying those taxes. There was no use for or benefit from the services that tax money provided.

But nowadays, taxation isnt about providing public services, nor is it about providing any logical tie to the money being tax with how it is spent. Nowadays, it is about paying fat bloated pensions to a bunch of lazy pathetic braindead entitled public workers who make way to much damn money for what they do, and are now flailing about in a mad money grab. And no one is exempt from that, even out of state retailers.

This is taxation without representation, in its very simplest form. And the result of it will be the same as in the 18th century. Government is so far out of control that they dont even attempt to tie tax revenue with public services. It is just a blatant money grab, the short definition for this is tyranny.

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