White House backs Internet sales tax bill

Apr 22, 2013
The Amazon logo is projected onto a screen at a press conference on September 6, 2012 in Santa Monica, California. The White House backs a Senate bill to force online retailers like Amazon and eBay to collect state and local sales taxes, hoping to end a cost disadvantage hampering bricks and mortar businesses.

The White House Monday backed a Senate bill to force online retailers like Amazon and eBay to collect state and local sales taxes, hoping to end a cost disadvantage hampering bricks and mortar businesses.

The bill, which was being debated in the Senate on Monday, could lead to the recouping of $11 billion in lost annual sales taxes, according to a University of Tennessee research study.

"We believe that the Marketplace Fairness Act will level the playing field for local small-business retailers, who are undercut every day by out-of-state online companies," said White House spokesman Jay Carney.

"Today, while local small-business retailers follow the law and collect sales taxes from customers who make purchases in their stores, many big-business online and catalog retailers do not collect the same taxes."

"We have heard overwhelmingly from governors, mayors and the business community on the need for to level the playing field for our businesses and address sales tax fairness."

The Retail Industry Leaders Association says the bill would end unfair treatment for many small businesses

"The current policy, which forces competitors to play by different rules, is inherently unfair and puts Main Street retailers at a disadvantage to out of state, online only competitors," said Bill Hughes, the association's for government affairs.

The Act would require Internet and remote retailers to collect state sales taxes no matter where they are located when a transaction takes place, and advocates hope it would ease budget problems in many cash-strapped states.

Opponents of the Act say it would still be unfair because retailers in a state which has no sales tax would still be liable to collect tax on purchases made in distant states which do have sales taxes.

They say the measure would also harm smaller online retailers as big firms like and can more easily absorb the impact of the new sales tax.

Explore further: Microsoft sues Samsung alleging contract breach

add to favorites email to friend print save as pdf

Related Stories

Amazon, Texas reach deal to settle sales tax spat

Apr 27, 2012

(AP) -- Online retailer Amazon.com reached an agreement with Texas officials Friday to settle a sales tax dispute by expanding operations in the state and starting to collect sales taxes.

Mall giant sues Indiana to tax Amazon.com sales

Nov 04, 2011

(AP) -- Shopping mall giant Simon Property Group sued the Indiana Department of Revenue on Thursday to try to force it to collect taxes from Amazon.com Inc. for all sales made in the state.

Amazon says gets OK for Calif sales tax referendum

Jul 19, 2011

(AP) -- Amazon.com Inc. says the California Attorney General's Office has approved its petition for a referendum that would let voters decide whether to overturn a new law that forces online retailers to collect sales taxes ...

Recommended for you

Apple closes acquisition of Beats music

17 hours ago

Apple said Friday it closed its $3 billion deal for Beats, the high-end audio equipment and streaming music service, a tie-up that could allow the iPhone maker to reach new audiences.

User comments : 3

Adjust slider to filter visible comments by rank

Display comments: newest first

Porgie
3 / 5 (4) Apr 22, 2013
BO will support anything that will give him money to buy votes. BO is a bad President.
VENDItardE
3 / 5 (4) Apr 22, 2013
hoping to end a cost disadvantage hampering bricks and mortar businesses............

absolute total bullsh*t,,,,,,white house supports raising taxes every single time,,,,gotta pay t heir voters from somewhere
alfie_null
1 / 5 (1) Apr 23, 2013
If the point is to bring parity to small businesses, how about fixing corporate income tax?