Bill aimed to tax internet sales
Tue, 23 Apr 2013 21:52:56 GMT —
Washington, D.C. - On Monday, the senate moved to take up a bill allowing states to collect online sales tax with a 74 to 20 vote.
This bill would be a possible monkey wrench in a area free of taxation with no political representation.
Steve Timofeev, part owner of Web Art in downtown Toledo, says, "Does that take away the advantage of doing it online, or actually driving to a store and purchasing it at a store? It could have some kind of affect, yes."
Web Art creates websites and ecommerce websites for clients, Steve says a change would affect many who buy and sell though places like ebay or amazon, and also private retail websites.
"It's going to affect the small business owner that may be doing $100k, $200k in sales on the internet where they're going to have to hire additional personnel to manage this," says Timofeev.
The bill would allow each state will have the power to demand a sales tax from online buyers, which will go back to the state of the buyer. The tax would be beneficial to each state.
Timofeev says, "Isn't the concept of state tax to cover the roads and infrastructure and things like that?"
But is it fair to a seller on Ebay, who already pays 10% of the sale price back to Ebay? Or the buyer, who uses the internet for the best deals?
Sellers would be forced to raise prices to compensate for the tax, or possibly do away with things like free shipping or multiple item discounts.
If passed, it will put a strain on the competative edge of the ecommerce community, and put an estimated 12 to 23 billion dollars into the each state government.
If the bill continues to gain support, it could be passed as early as this week.