Wednesday, November 12, 2014

Internet Sales Tax Facing Republican Opposition - Jason Chiu

Jason Chiu

There Won't Be an Internet Sales Tax Anytime Soon

            Supporters of the bill which would end online tax-free online shopping has faced staunch and significant opposition from Republicans in Congress. House Speaker John Boehner of Ohio said that he would block the bill, which would allow states to collect a sales tax from online retailers. Known as the Marketplace Fairness Act (MFA), the bill was passed by the Senate with strong bipartisan support more than a year ago. House Republicans have never supported the bill, however. Their opposition stems from the worry that voters could view the online tax as an indirect tax increase. As expected, small online retailers have recognized Boehner’s effort as the online tax poses a threat to smaller online retailers.
Boehner has made it very clear that he will oppose the bill no matter what. Supporters of the tax measure still are not giving up hope. Led by Majority Whip Richard Durbin of Illinois, supporters of the tax measure are keeping all options open including combining two measures.

While Boehner has staunchly opposed the measure, two Republican representatives have expressed their support. Mike Enzi of Wyoming and Lamar Alexander of Tennessee hope that the bill will still pass before the year’s end. Republicans who support the measure and Democrats have attempted to tie the MFA to a similar sounding but separate bill that implements a longstanding ban on taxing Internet access. This is something that both sides agree upon but many expect that Boehner and the House Republicans will not budge on the issue.

Sources:

http://online.wsj.com/articles/internet-sales-tax-faces-republican-opposition-1415739069

http://time.com/3580835/internet-sales-tax/

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