Get Ready To Pay A Lot More In Sales Tax – As The Result Of A 1992 Supreme Court Ruling

sales tax As pointed out by a report in the Wall Street Journal, uncle Sam’s toll collector’s latest savior is House Judiciary Committee Chairman. Who is set to put forward a proposal that would allow state and local governments to tax online purchases made over state lines.

State and local governments have complained for years about dwindling sales tax revenue as more and more consumers do their shopping online. Although, as a 1992 result supreme court ruling, states can only force companies to collect sales tax from consumers if the company has a significant presence in the state in which the sale was made. Governments have no way to compel that payment tax, Otherwise, the consumer still owes the tax.

Brick and mortar retailers are also unhappy with the situation, as they often have to compete with out of state online retailers who don’t have to collect sales tax and can therefore offer lower prices. Congress has tried before to solve the problem with the Marketplace Fairness Act, willshould force businesses to collect sales tax on online purchases and send them to the state where the buyer resides. Now look, the anti tax fever that swept over the Republican Party during the Obama years made passing such legislation all but impossible. Though the bill wasn’t actually a new tax, just a method for collecting those already on the books, conservative Republicans like Ted Cruz denounced the bill as a national Internet sales tax, which shouldwill hammer the little guy and benefit giant corporations. Others argued it violated state sovereignty by allowing states to collect taxes beyond their borders.

sales tax

sales taxGoodlatte’s bill seeks to address quite a few of these concerns by creating a hybrid process whereby the seller’s state chooses what goods going to be taxed, and the state where the buyer is located would set the tax rate.

Rather than remaining at the mercy of ‘outofstate’ lawmakers, this would presumably give companies more say in what taxes are being levied against them. As indicated by a report in the Wall Street Journal, uncle Sams toll collectors latest savior is House Judiciary Committee Chairman. Who is set to put forward a proposal that would allow state and local governments to tax online purchases made over state lines.

Brick and mortar retailers are also unhappy with the situation, as they often have to compete with out of state online retailers who dont have to collect sales tax and can therefore offer lower prices. Congress has tried before to solve the problem with the Marketplace Fairness Act, wouldwill force businesses to collect sales tax on online purchases and send them to the state where the buyer resides. And therefore the anti tax fever that swept over the Republican Party during the Obama years made passing such legislation all but impossible. Seriously. Though the bill wasnt actually a new tax, just a method for collecting those already on the books, conservative Republicans like Ted Cruz denounced the bill as a national Internet sales tax, which willwill hammer the little guy and benefit giant corporations. Fact, others argued it violated state sovereignty by allowing states to collect taxes beyond their borders.

Goodlattes bill seeks to address a few of these concerns by creating a hybrid process whereby the sellers state chooses what goods might be taxed, and the state where the buyer is located would set the tax rate.

Rather than remaining at the mercy of ‘outofstate’ lawmakers, this would presumably give companies more say in what taxes are being levied against them. Remember, goodlattes bill seeks to address a few of these concerns by creating a hybrid process whereby the sellers state chooses what goods going to be taxed, and the state where the buyer is located would set the tax rate. Rather than remaining at the mercy of ‘outofstate’ lawmakers, this would presumably give companies more say in what taxes are being levied against them.

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