Senate passes Internet sales-tax bill
WASHINGTON (MarketWatch) — Congress took a step toward ending tax-free shopping on the Internet on Monday, as the Senate passed a bill empowering states to collect sales tax for purchases made online.
But online shoppers won’t have to pay sales tax just yet. The measure — which got 69 yes votes and 27 no votes in the Senate — next goes to the House of Representatives, where anti-tax sentiment among many Republicans may make it more difficult to pass.
Supporters of the legislation, named theMarketplace Fairness Act in the Senate, say it is about tax fairness and that it isn’t a tax increase. Read Q&A with National Retail Federation tax expert.
“Some have said: ‘Well, it’s a new tax.’ Of course it’s not,” said Tennessee Republican Sen. Lamar Alexander. “This is a tax that everybody owes but only some people pay.”
Opponents claim it amounts to a national Internet sales tax and imposes burdensome compliance costs on small businesses.
“I fear that what we’re going to do is crush a lot of these start-ups,” said Sen. Ron Wyden, an Oregon Democrat.
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