And you thought Republicans hated taxes? Hah!
CNET has learned that two Republican senators are preparing to introduce new legislation that would allow states to force Amazon.com and other out-of-state online retailers to collect sales taxes.
Sens. Mike Enzi of Wyoming and Lamar Alexander of Tennessee are currently putting the final touches on their bill, which is backed by Wal-Mart Stores, Best Buy, Home Depot, and other companies that are currently required to collect sales taxes. It’s a bipartisan concept: a related effort was embraced by Democrats including Sen. Dick Durbin of Illinois a few months ago.
I’ve long felt that the internet tax exemption was going to be history sooner rather than later. It was just a matter of time.
I’m just curious if this will kill the tax exemption for other out of state retail sales, too? I thought the reasoning behind the internet sales exemption was that any retailer lacking a bricks and mortar location in a particular state didn’t have to charge sales tax. That’s why if you travel out of state and buy from a store and have your items shipped home, you don’t have to pay that particular state’s sales tax. (Of course, you’re supposed to voluntarily pay that tax in your home state but really, does anyone do that?)
Am I understanding this incorrectly?
Anyway, I know a bunch of people are going to whine about this because a lot of folks have had a free ride for a long time. But I never really understood the logic behind these sales tax exemptions in the first place.