Internet Tax Bill Passes Senate, Uncertain Of Future In House
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If shopping online is something you love doing because it can save you money, you could be in for a rude awakening. The U.S. Senate recently passed an Internet tax bill that demands companies to collect the sales tax on all products.
As it stands currently, companies only collect sales tax from people if products are purchased in the same state the company has a physical presence in.
Supporters of the tax bill say it’s a matter of being fair.
According to Sen. Dick Durbin, people would come in to showcase the store, look for running shoes and not able to decide. Once they found a pair they did like, they wrote the information down and looked to the Internet to order the product. This allowed them to circumvent the sales tax they would have paid in the store.
Many retailers – Wal-Mart, Amazon and more – want online retailers to collect sales tax. Amazon does because it’s got distribution centers in many states.
Local and state governments are hoping for the passage of the Internet bill because of the tax income that will be generated from it.
Proponents to it – eBay, for example – don’t like the idea because small Internet businesses could be forced to increase their prices and comply with thousands of local and state tax laws.
Sen. Ted Cruz said there is an alliance by big companies to push the tax bill through, which would hurt smaller businesses.
Although it has successfully passed the Senate, the chances of it passing the house are uncertain.
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