Tuesday, July 6, 2010

Rep. Delahunt introduces bill to streamline payment of taxes for online purchases

Rep. William Delahunt (D-Mass.) has proposed a measure that would provide for a simplified sales-tax collection system setting up a way for online retailers to collect sales taxes on purchases.

The change could raise as much as $23 billion in new taxes, according to the National Conference of State Legislatures, which supports the legislation.

Current tax rules don't require Internet retailers from collecting state taxes if they don't have a "physical presence" in a state.

Critics of the change argue closing the loophole on purchases made over the Internet would mean a tax increase for Americans.

Proponents say that because sales tax is due on all purchases, it's just a matter of determining who collects the tax, the seller or purchaser. They also say uncollected taxes have pushed state budgets into the red, forcing states to raise other taxes to compensate.

Posted via email from The Modern Planner

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