Question

Discuss the status of congressional action and lobbying in relation to establishing an online sales tax. NOTE: Posts should be more than a “book report”, and display proof of critical thinking.

Answer 1

Federal and state advocates for legislation are describing the bill as an economic tool for states and local governments, along with helping downtown businesses, rather than a tax hike. The marketplace fairness act permits congress to provide funds for the states without funds coming from the states.

The legislation has been pushed in Congress for more than a decade and has been a priority for national groups representing state governors and lawmakers in Washington. The proposal follows a 1992 U.S. Supreme Court decision which allows states to collect sales tax from residents who purchase online or catalog merchandise, if the residents provide the information to state tax collectors. State officials have long said residents don't provide the information and taxes, costing states an estimated $23.3 billion in 2012 sales tax revenue alone.

In addition to the revenue,internet sales tax advocates describe the legislation as helping small business , particularly those in downtown areas which they say are losing business to internet retailers due to the sales tax issues.

State lawmaker says that internet sales tax would help current fiscal and it would provide a new dedicated revenue source for state and local governments. Th bill would be a benefit for rural states, where many residents choose to shop online rather than shop physically.