Kiss Tax-Free Internet Sales Goodbye?

It has been a question of when, not if, Congress would allow the states to tax Internet sales that until now have been beyond their reach.  The weak economy is converging the forces represented by the National Conference of State Legislatures, who’ve been pushing Congress for such taxing authority for years, and the Streamlined Sales Tax Agreement, a multi-state agreement to simplify the confusing array of state and local sales tax rates and definitions.  In Tax-free Internet shopping may be at an end Declan McCullagh reports about a bill that could be filed in Congress as soon as Monday to “rewrite the ground rules for mail order and Internet sales by eliminating what its supports view as a ‘loophole” that, in many cases, allows Americans to shop over the Internet without paying sales taxes. McCullagh provides a brief and informative overview of the current law; Internet law students can work their understanding of the Supreme Court’s decision in Quill v North Dakota into discussions about the proposed law with friends, family members, and prospective employers.

2 thoughts on “Kiss Tax-Free Internet Sales Goodbye?”

  1. I honestly wouldn’t mind paying state taxes for internet purchases. I already feel that I’m getting a discount over the internet since online merchants have little overhead, and so prices for most products are quite below those of physical stores. Plus, states need the added revenue these days.
    Full disclosure: I’m someone who believes that the income tax should be lowered across the board, and sales tax should be something akin to the European VAT in the neighborhood of 15%.

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