Internet Sales Tax Bill Dead In Congress

jfruh writes: Last year, a bipartisan coalition helped get the Main Street Fairness Act approved by the U.S. Senate. The bill would have allowed state and local governments to collect sales taxes on Internet sales by companies in different jurisdictions. But House Speaker John Boehner, a longtime opponent of Internet taxes, won't bring the matter to a vote in the House before the end of the year, which should kill it for the immediate future.

Comments

Re:Meh

[russotto]

Technically, you still have to pay state sales tax on purchases made over the Internet. You just exploit the fact that the states can't force Internet retailers to collect those taxes and send them to the state as a way to skip out on paying your taxes.

There's no state sales tax on out of state purchases; that would be an unconstitutional tax on interstate transactions. There is a use tax on out of state purchases that you didn't pay sales tax on. I consider this "use tax" to be a transparently obvious evasion of the restriction on states taxing interstate commerce, and therefore invalid. Then I exploit the fact that the states can't force Internet retailers to collect those taxes to avoid getting into a dispute with the state over whether they are actually invalid.