Taxing your Internet: Congress expected to reboot the issues in 2015

Posted on 01-05-2015 by
Tags: Latest Headlines & Stories , trending news

It was only a matter of time that products bought online would be taxed. With as great of a part technology plays in each of our lives, it would be crazy not to try taxing items bought online. While it’s almost inevitable to happen, a law to enable it hasn’t been passed just yet, according to Entrepreneur.

Congress is moving to put off any action on Internet tax issues, including online access taxes and online state sales taxes.

Bricks-and-mortar retailers have pushed for years for empowering the 45 states that charge sales taxes to require e-tailers to collect it on online purchases. Today, only some states require this and only for some e-tailers.

This creates an inconsistency in the system gives many online merchants who do not collect sales tax a pricing advantage over traditional stores that have to collect sales tax according to the law. Online shoppers are supposed to submit payment for tax due, but not many people do. As a result, many online purchases are tax-free and cheaper than purchases made in-store.

A bill last year to enable states to force collection of sales tax on Internet purchases, which was approved by the Democratic-led Senate, was stalled in the House of Representatives. Republicans in the House opposed it as a tax increase even though online shoppers were already, by law, supposed to pay sales tax.

House Republican leaders have signaled that all these matters are likely to be taken up again early in 2015, when Republicans will control both the House and Senate.

In July, the House approved a bill to permanently ban new taxes on Internet access. The Senate however, would not approve it. Republican leaders in the House have signaled that these matters would likely be re-assessed again early in 2015, when Republicans will control both the House and Senate.


Posted on : 8 Jun 2015 11:03 AM

This Forbes Post helps you to tackle the above-mentioned problem.

3 Ways To Still Avoid Sales Tax Online

Amazon Now Collects Tax in 20 States, But It's Still Possible to Avoid Sales Tax if You Put Your Mind to it.

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