Internet Sales Tax Coming Soon
Senator Lamar Alexander, a Republican from Tennessee, thinks he's figured out a way to collect sales tax on internet sales. Alexander has joined with Senator Mike Enzi, a Republican from Wyoming, and Senator Dick Durbin, a Democrat from Illinois, on Wednesday to introduce federal legislation that would allow states to more easily collect sales taxes for online purchases made by their residents. Five Republicans and five Democrats have joined to co-sponsor the Marketplace Fairness Act.
Alexander said, “If I were president of an online business, … I'd make plans to start collecting sales taxes wherever I sold things in the United States.”
The legislation will give the states the option of collecting sales taxes on online retailers with annual sales over $500,000.
Amazon “strongly supports” the Senate legislation, while eBay, an online auction retailer, opposes the legislation.
Ebay's vice president for government relations, Told Cohen, said, “This is another Internet sales tax bill that fails to protect small-business retailers using the Internet and will unbalance the playing field between giant retailers and small-business competitors.” Moreover Mr Cohen said, “It does not make sense to expand Internet sales tax burdens on small businesses at a time when we want entrepreneurs to create jobs and economic activity.”
Perhaps it's time to voice your opinion on the matter. (You can do so at any of the links above.)
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