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Debate Heats Up Over Internet Sale Tax

Debate Heats Up Over Internet Sale Tax

Just in time for the Christmas shopping season, there's a tug-of-war on Capitol Hill whether to enforce an Internet sales tax.

Currently, states can only collect sales tax from retailers with a physical presence in their state.  Ronnie Volkening at the Texas Retailers Association insists online sales are killing mom and pop stores.

“Located in another state, you get in Texas an automatic eight-and-a-quarter percent advantage because they're not collecting sales tax,” Volkening tells KTRH News.

Retailers are backing legislation being introduced in the House Judiciary Committee.

Texas Congressman Blake Farenthold sits on that committee, but strongly opposes the bill.

“I think it gives a foot in the door for some of the folks up in Washington who are looking for more money to say all these states are collecting something off these Internet sales, why don't we stick in another percent or two in there,” says the Corpus Christi Republican.

People who order online from another state are supposed to declare purchases on your tax forms, but few if any do.

“Any elected official trying say this isn't a tax increase, they're going to have that conversation with their constituents once those constituents see their taxes go up,” says Katie McAuliffe with Americans for Tax Reform.

McAuliffe says there are more important matters to worry about such as the crisis in Syria.

 

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