Senate Passes Internet Sales Tax Bill

By a wide margin - 69-27 - the Senate passed legislation designed to require businesses selling products and services on the internet to collect sales tax not only for the states in which they are located (as they currently do) but for states in which their products are sold online, even though the business is not domiciled in that state. In other words, sales tax will be imposes on all our purchase over the internet.

Here are a few choice sections of the report from Bloomberg with my comments in red:

The bill would in effect reverse a 1992 U.S. Supreme Court decision that prohibited states from taxing businesses that lack a physical presence inside their borders.

So the bill overturns a Supreme Court decision that considered the matter. But remember, lots more money is at stake than was in 1992, the days before the Internet. So here's a good example of how money trumps the law.

“It’s a rare opportunity for us to have Republicans and Democrats together on the floor to support a bill that has the endorsement of business and labor and local officials all across the United States,” said Senator Richard Durbin of Illinois..."

Aren't you glad that the two parties played nice together here? This sort of thinking could only come from politicians, whose world consists of pursuing and playing with power, completely oblivious to those whom they were elected to serve. As for endorsements, check in with small business owners and those of us who purchase on the internet and see how many endorsements you come up with. Why should endorsement from business, labor and local "officials" matter to the rest of us? As for why they matter to politicians, it's all got to do with the fact that these people "lobby" (read: pay off) politicians.

“Congress needs to address this sales tax disparity,” the retail group’s board chairman, Saks Inc. (SKS) Chief Executive Stephen Sadove, said in the statement. “Retailers of all shapes, sizes and channels deserve a level playing field.”

My idea to level the playing field: eliminate the tax for the poor big businesses who are being "victimized" here. Otherwise, leave things as they are. Funny how the solution of politicians winds up being an increase in taxes, isn't it?

(Read the whole article by clicking HERE.)

Also, read this previous post for the impact this legislation will have that no one is talking about now.