INSIGHTS•1 MIN READ
White House: Internet sales tax ‘will level the playing field’
rocktivity
Published on April 22, 2013
Published on Wealthy Affiliate — a platform for building real online businesses with modern training and AI.
The White House Monday backed a Senate bill to force online retailers like Amazon and eBay to collect state and local sales taxes, hoping to end a cost disadvantage hampering bricks and mortar businesses.
The bill, which was being debated in the Senate on Monday, could lead to the recouping of $11 billion in lost annual sales taxes, according to a University of Tennessee research study...
The Act would require Internet and remote retailers to collect state sales taxes no matter where they are located when a transaction takes place, and advocates hope it would ease budget problems in many cash-strapped states.
Opponents of the Act say it would still be unfair because retailers in a state which has no sales tax would still be liable to collect tax on purchases made in distant states which do have sales taxes.
They say the measure would also harm smaller online retailers as big firms like Amazon and WalMart can more easily absorb the impact of the new sales tax.
The bill, which was being debated in the Senate on Monday, could lead to the recouping of $11 billion in lost annual sales taxes, according to a University of Tennessee research study...
The Act would require Internet and remote retailers to collect state sales taxes no matter where they are located when a transaction takes place, and advocates hope it would ease budget problems in many cash-strapped states.
Opponents of the Act say it would still be unfair because retailers in a state which has no sales tax would still be liable to collect tax on purchases made in distant states which do have sales taxes.
They say the measure would also harm smaller online retailers as big firms like Amazon and WalMart can more easily absorb the impact of the new sales tax.
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