Congress Considering National Internet Tax

Proponents in Congress of a national internet sales tax are at it again. In fact, Dick Durbin and his ilk are trying to expand the provisions beyond the internet. 

We’ve been down this road. It was only the last session of Congress that the Main Street Fairness Act died a much deserved death. Like a good politician, its proponents don’t know when to quit. Specifically, one Dick Durban of Illinois is touting a new bill that would equal the Main Street Fairness Act and take it an extra, brutal step. 

The new bill, so far unnamed, is designed to overturn two Supreme Court decisions that said states could not collect sales tax from businesses that had no physical presence in them. The new bill would allow states to do just that. Importantly, this isn’t just about internet companies. No, Durbin is swinging for the fences and wants to allow states to go after brick n’ mortar companies in other states as well. Talk about a boondoggle of a law. 

Durbin’s proposed bill is nothing new. In fact, it isn’t even needed. Why? The bill specifically will call for the states to come together and agree on a streamlined sales tax reporting method that businesses can follow. Well, Dick, guess what? They are already trying to do that and have failed miserably. They even have a website by the name of…streamlinedsalestax.org. In 11 years, they’ve only been able to get 20 plus states to agree to a form. It’s pathetic.

Real Tax

The effort to create an internet sales tax is nothing more than an effort to raise funds for programs politicians over promised on. States are running shortfalls in revenues and going after the web companies is one way to raise the much needed funs. The proponents argue it will create a level playing field between brick n’ mortar shops and internet sites like Amazon. Wrong. Internet retailers have to charge shipping and handling fees to customers while brick n’ mortar entities do not. These balance out any sales tax advantage. Take it away and it will be brick n’ mortar entities that have the advantage. 

Does Durbin’s bill have any chance of passing? It will come down to the Republicans in the House of Representatives. They say they’ve learned their lesson when it comes to taxing and spending. I guess we will see when this bill comes rolling across their decks.