Skip to: Content
Skip to: Site Navigation
Skip to: Search


Tax VOX

Online sales tax: Is it in our future?

Online sales tax has growing bipartisan support among the nation’s governors, Francis writes, many of whom are strapped for tax revenues.

By Norton FrancisGuest blogger / April 22, 2013

The exterior of the Internal Revenue Service building is shown in Washington. The Marketplace Fairness Act of 2013 would give states authority to require online sellers to collect sales tax on the products they sell to consumers within their jurisdictions.

Susan Walsh/AP/File

Enlarge

Senate Majority Leader Harry Reid (D-NV) plans to bring the Marketplace Fairness Act of 2013 to the floor today for a preliminary vote.  The measure would give states authority to require on-line sellers to collect sales tax on the products they sell to consumers within their jurisdictions.

Skip to next paragraph

The Tax Policy Center is a joint venture of the Urban Institute and Brookings Institution. The Center is made up of nationally recognized experts in tax, budget, and social policy who have served at the highest levels of government. TaxVox is the Tax Policy Center's tax and budget policy blog.

Recent posts

This is big news.  Two years ago, Senate Finance Committee Chairman Max Baucus (D-MT) refused to send the bill to the Senate floor.

So this year, Reid is bypassing the committee.  The idea has growing bipartisan support among the nation’s governors–many of whom are strapped for tax revenues. A few weeks ago, 75 senators voted to include it in the non-binding Senate budget resolution, and an identical version in the House appears to have support. That sounds promising.

This year’s bill doesn’t differ much from the 2011 version, but it does increase the threshold for covered businesses to firms with sales over $1 million, making it easier for small business groups to stomach. And if it really does bring in the millions of dollars promised, it might make up for the sequester’s cuts in just about every program that helps states.

Let’s see what the Senate does and, if the Senate OKs the bill, what happens in the House.  As I said inFebruary, this might be the year the decades old impasse over taxing remote sales is finally resolved.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on taxvox.taxpolicycenter.org.

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer

 

Doing Good

 

What happens when ordinary people decide to pay it forward? Extraordinary change...

Endeavor Global, cofounded by Linda Rottenberg (here at the nonprofit’s headquarters in New York), helps entrepreneurs in emerging markets.

Linda Rottenberg helps people pursue dreams – and create thousands of jobs

She's chief executive of Endeavor Global, a nonprofit group that gives a leg up to budding entrepreneurs.

 
 
Become a fan! Follow us! Google+ YouTube See our feeds!