• Home
  • Mission
  • Federalist Papers
  • Foundation
  • U.S. Constitution
  • Bill of Rights

Federalist Press | Defending Liberty — Informing America

Breaking News and Political Commentary

  • All Stories
  • Economy
  • Elections
  • Entitlement
  • Ethics
  • Foreign
  • Gender
  • Religion
  • Sci-Tech

Dems Trying to Tax Online Shoppers

April 22, 2013 By Editor Leave a Comment

internet_online_taxStates could force Internet retailers to collect sales taxes under a bill that overwhelmingly passed a test vote in the Senate Monday.

Under current law, states can only require stores to collect sales taxes if the store has a physical presence in the state. As a result, many online sales are essentially tax-free, giving Internet retailers a big advantage over brick-and-mortar stores.

The bill would allow states to require online retailers to collect state and local sales taxes for purchases made over the Internet. The sales taxes would be sent to the states where shoppers live.

The Senate voted 74 to 20 to begin debating the bill. If that level of support continues, the Senate could pass the bill as early as this week.

Supporters say the bill is about fairness for businesses and lost revenue for states. Opponents say it would impose complicated regulations on retailers and doesn’t have enough protections for small businesses. Businesses with less than $1 million a year in online sales would be exempt.

“I believe it is important to level the playing field for all retailers,” said Sen. Mike Enzi, R-Wyo., the bill’s main sponsor. “We should not be subsidizing some taxpayers at the expense of others.”

In many states, shoppers are required to pay unpaid sales tax when they file their state income tax returns. However, states complain that few people comply.

“I do know about three people that comply with that,” Enzi said.

President Barack Obama supports the bill, but its fate is uncertain in the House, where some Republicans regard it as a tax increase. Heritage Action for America, the activist arm of the conservative Heritage Foundation, opposes the bill and will count the vote in its legislative scorecard.

Many of the nation’s governors — Republicans and Democrats — have been lobbying the federal government for years for the authority to collect sales taxes from online sales, said Dan Crippen, executive director of the National Governors Association. Those efforts intensified when state tax revenues took hit from the recession and the slow economic recovery.

“It’s a matter of equity for businesses,” Crippen said. “It’s a matter of revenue for states.”

The bill pits brick-and-mortar stores like Wal-Mart against online services such as eBay. The National Retail federation supports it. And Amazon.com, which initially fought efforts in some states to make it collect sales taxes, supports it, too.

“Amazon.com has long supported a simplified nationwide approach that is evenhandedly applied and applicable to all but the smallest volume sellers,” Paul Misener, Amazon’s vice president of global public policy said in a recent letter to senators.

On the other side, eBay has been rallying customers to oppose the bill.

“I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea,” eBay president and CEO John Donahoe said in a letter to customers. “Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business.”

The bill is also opposed by senators from states that have no sales tax, including Sen. Max Baucus, D-Mont., and Sen. Kelly Ayotte, R-N.H.

“Supporters of this online sales tax bill are trying to muscle it through before senators find out how disastrous it would be for businesses in their states,” Ayotte said. “I will fight this power grab every step of the way to protect small online businesses in New Hampshire and across the nation.”

Baucus said the bill would require relatively small Internet retailers to comply with sales tax laws in thousands of jurisdictions.

“This legislation doesn’t help businesses expand and grow and hire more employees,” Baucus said. “Instead, it forces small businesses to hire expensive lawyers and accountants to deal with the burdensome paperwork and added complexity of tax rules and filings across multiple states.”

But Sen. Dick Durbin, D-Ill., said the bill requires participating states to make it relatively easy for Internet retailers to comply. States must provide free computer software to help retailers calculate sales taxes, based on where shoppers live. States must also establish a single entity to receive Internet sales tax revenue, so retailers don’t have to send them to individual counties or cities.

“We’re way beyond the quilt pen and leger days,” Durbin said. “Thanks to computers and thanks to software it is not that complex.”

Published April 22, 2013 / Associated Press

Filed Under: All Stories, Economy, Elections, Entitlement, Ethics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Federalist Press Dispatch

Get breaking political news, investigations, and uncensored analysis delivered directly to your inbox.

Please wait...

Thank you for subscribing to the Federalist Press Dispatch.

Byrna Non-lethal Self Protection

Byrna Non-lethal Self Protection

Byrna offers non-lethal self protection at an affordable price. Watch the short video, or click to learn more!

Click to talk with us about writing your book >>

Do you want to write a book? James Thompson is a ghostwriter who writes the books of people just like you.

Brit Axton Mysteries Series

Brit Axton Mysteries Series

Brit Axton Mysteries is a series of young adult adventure novels that lead young Brit Axton and her friends on whirlwind adventures to uncover hidden secrets and long lost treasures.

Get free info to help your life

Get free info to help your life

Simple bite-sized guides for life, money, civics, and more . . . because some stuff school just didn’t cover.

Understanding Cryptocurrency: Essentials for Building Wealth in Digital Currency

Understanding Cryptocurrency: Essentials for Building Wealth in Digital Currency

Understanding Cryptocurrency serves as a definitive guide for novice investors looking to understand the world of cryptocurrency and harness its potential for financial growth and prosperity.

Real Estate Wealth Strategies During High Inflation

Real Estate Wealth Strategies During High Inflation

Real Estate Wealth Strategies During High Inflation is a comprehensive guide on navigating the real estate market, offering strategies and insights for successful investing, during high inflation and interest rates.

Privacy Policy

Terms of Service

Follow us

  • parler
  • welcome-widgets-menus
  • facebook
  • envato

Economy

Is Islamic Terror Winning? 25 Years After 9/11: America Must Remember What Happened

The ‘Choice’ the Left Hates: Our Children’s Education

The Red Line Moves: The Socialist-Islamist Insurgency No Longer Hides at the Democratic Party’s Fringe

Elections

The ‘Choice’ the Left Hates: Our Children’s Education

The Red Line Moves: The Socialist-Islamist Insurgency No Longer Hides at the Democratic Party’s Fringe

For What Possible Reason? The Political Movement That Opposes the People

Foreign

Europe Is Finally Learning the Lesson Trump Tried to Teach

Missing Los Alamos Scientist Found Dead — But Serious Questions Remain

How Many More Victims of Lethal Compassion?

Crime

The Growing Cloud Over Sen Ruben Gallego: Money, Staffers, Swalwell and Questions Arizona Deserves Answered

No Debate, No AG Interview: What Is AZ Gov Katie Hobbs Hiding?

The Fang Fang Files: Democrats Covered Up Eric Swalwell Affair with Chinese Communist Intelligence Officer

Science Tech

Do Liberal Women View Lindsay Clancy Murders Akin to Late Term Abortions?

Trump UAP Disclosure: Five Tranches Later, UFO Disclosure Is No Longer Fringe

Trump Administration Releases Fifth Tranche of UFO Files as Transparency Initiative Continues

Reader Responses

  • Linda Livaudais on Trump’s UFO Disclosure Has Changed the Conversation — But Not Yet Answered the Biggest Question
  • T059736 on Trump and Musk Announce Plans to Shut Down USAID
  • C.Josef.D on ‘Pay to Play’ at Clinton Foundation Under Investigation
  • John D Cole on Biden Says ‘You ain’t black’ If You Don’t Vote for Him
  • Ed on U.S. Attorney Huber Moving to Indict Clintons and Others

Copyright © 2026 by Federalist Press · All rights reserved · Website design by RoadRunner CRM · Content Wiriting by GhostWriter · Log in