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

By Master Kenobi (blog) on 5/8/2013 10:57:27 AM , Rating: 2
If you think the recession was Bush's fault, you never took classes in macroeconomics.

There is a multi-year lag time between the state of the US economy and the policies being put into place by those in power. Generally of the 3-4 year timeframe. Everyone seems to think Congress/President can adeptly wield our economy with the agility of a tiny restaurant. It doesn't work that way. The problems with this economy started with Clinton, continued through Bush, now with Obama. None of them has done anything fantastic to help it out, but parroting Obama who blames everything on Bush is incorrect.

Obama has been in office 4.5 years now, his policies are now directly reflecting on the state of our economy. The result? No change. The US economy will inch along for the next several years as it recovers from bad policies from Congress and too much greed all at once from certain key companies. Nothing Obama does at this point is going to speed that process up. Which is probably why he hasn't said much about it lately, he knows and his advisors know that the only time will improve things.

Of course as for overall federal debt, it's always a good idea to cut back the useless spending in areas where it makes sense. Clinton cut federal spending and while it hurt us later because he cut too deeply, it wasn't inherently a bad idea. Bush increased spending and Obama has increased it further. Federal spending increases as the economy goes down, and tends to draw back as the economy improves. So far we haven't seen the spending cuts that show the government is confident in the economy. Federal spending likely won't start drawing back until Obama's last year or two in office, perhaps not until his successor.


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