End of the Internet's Tax-Free Ride?

News.com has a piece looking at renewed efforts by both state and federal lawmakers to subject Internet sales to state taxes. "Two bills are pending in Congress that would allow tax collectors to target out-of-state Internet and mail-order retailers, and their supporters are optimistic about their political prospects... Meanwhile, pro-tax states are trying their own ways to circumvent a long-standing rule saying a retailer must have physical presence before it can be forced to collect taxes. One effort came from New York state, where legislators recently approved a measure requiring Amazon and other online retailers (that lack a physical presence in the state) to collect sales tax on New Yorkers' purchases... This is not exactly a new debate... But now, with a Democratic Congress and a potentially Democratic administration next year, the arguments may gain more political traction."

Comments

In related news ...

[PPH]

...Internet businesses move offshore.

Re:If the Democrats were economically progressive

[kahrytan]

If the Democrats were really economically progressive, they would be opposed to the sales tax. It's one of the best examples of a regressive tax out there. The income tax is a lot better at taking from those who can afford it.

However, as I'm sure others will note, Democrats tend to support sales taxes. New York is highly Democrat, and you see 8.75% sales tax. I still don't see the purpose of this.

Tax the money once, when people earn it. Tax it well.

Income tax is dumbest idea since the invention of fire. Fair tax, republican invention, is the best tax idea.