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Senators add Internet sales tax amendment to budget resolution

Grant Gross | March 22, 2013
A group of U.S. senators have offered a nonbinding amendment to a fiscal year 2014 budget resolution allowing states to collect sales taxes on Internet sales and end the tax-free shopping that many shoppers enjoy online.

States miss out on about $23 billion a year in uncollected taxes in the current system, supporters of the amendment said.

Senator Kelly Ayotte, a New Hampshire Republican, said the Marketplace Fairness Act is misnamed. The amendment should be called the "Internet Tax Collection Act," she said. "This is another attempt to turn our businesses into tax collectors." Businesses in New Hampshire, which doesn't have a sales tax, would be forced to collect sales tax for other states, she said.

The We R Here Coalition, representing businesses opposed to an online sales tax, criticized the amendment's sponsors for adding it to the budget resolution.

"Here they go again -- another attempt by senators to sneak through an increase to the burdens on small online retailers, turning them into tax collectors instead of job creators," Phil Bond, executive director of the coalition, said in a statement. "There are good reasons this policy hasn't been considered in the U.S. Senate for over a decade: Taxpayers don't like it, it turns the Internet into a tax collection platform."

 

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