To many consumers, It is a smart idea to go to a store and examine the television that was just released, or go see that living room set, then buy it over the internet for a cheaper price.The reason goods are cheaper on the internet is because of a disappearance of state sales tax. This can end up in you saving a large amount of money.
The issue was addressed to congress in July. The issue was whether to close the loophole that allows online shoppers to avoid paying sales tax.
The first legislation was introduced by Rep.William Delahunt( D- Massachusetts). The Main Street Fairness Act attempts to put e-commerce retailers equal by imposing a state sales tax on consumers who shop online. Rep.Paul W. Hodes ( D- New Hampshire) disagreed with Rep.William Delahunt. In response to Delahunt’s proposal, Hodes said, “Congress should not impose any new burdensome or unfair tax collecting requirements on small online businesses, which would ultimately hurt the economy and consumers.”
Delahunt defended his idea by explaining his goals in passing this law. Delahunt explained that the internet tax would bring in much needed tax revenue cash-poor state and local governments, avert other types of tax increases (including tax on property).
According to state governments, they loose billions of dollars to an absence of tax revenue online.
“If we can accomplish passing the bill, I suspect the states will not have to raise new taxes.If you are concerned about rising taxes, this is a vehicle to avoid that. No one wants to pay more taxes. I certainly don’t”.
Major retailers such as Ebay are opposing the efforts of taxes on internet sales.William Ahern, director of policy and communications at the Tax Foundation said, “Our view is that it is still too burdensome for small and medium Internet stores to calculate state-local sales taxes to over 8,000 jurisdictions.”
Decisions have not been made for an internet sales tax but discussion will be brought up in the future.
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