New Bill Would Require Online Retailers To Collect State Sales Taxes
By Lisa Kellman
A group of ten Senators proposed a bill Wednesday requiring online retailers to collect sales taxes in an effort to level the playing field for small businesses who are being out-priced by online competitors.
The effort to pass the Marketplace Fairness Act is being led by Sens. Mike Enzi (R-Wyo.), Lamar Alexander (R-Tenn.) and Dick Durbin (D-Ill.).
“For over a decade, Congress has been debating how to best allow states to collect sales taxes from online retailers in a way that puts Main Street businesses on a level playing field with online retailers,” Enzi said.
As it currently stands, remote catalog businesses and online companies are not required to collect state sales taxes as local retail stores do. Instead, Americans are responsible for voluntarily declaring online purchases on their tax return.
If this bill is passed, however, online and remote industries would collect sales taxes electronically from their customers and send the money to the customer’s individual state.
The increased tax revenue would returnan estimated $28 billion dollars to states to be utilized at their own discretion.
“The legislation addresses a states rights issue: preserving the right of states to collect, or to decide not to collect, taxes that are already owed under state law,” Alexander said.
While 24 states have already implemented a similar sales tax collection method, the act proposed would be voluntary for the remaining states.
Amazon.com and other major online retailers as well as the Conservative Union President have expressed support for the legislation. Others, like eBay, have not been so quick to jump on board.
“This is another Internet sales tax bill that fails to protect small business retailers using the Internet and will unbalance the playing field between giant retailers and small business competitors,” said eBay VP Tod Cohen in a statement, according to reports.
GOP Senators Intro Bill To Protect SC Boeing Facility
By Andrea Salazar
A group of Republican senators urged Congress Wednesday to pass a bill limiting the National Labor Relations Board’s (NLRB) ability to shut down a Boeing Company facility in South Carolina.
The Acting General Counsel of the NLRB issued a formal complaint against Boeing alleging that it “violated federal labor law by deciding to transfer a second airplane production line from a union facility in the state of Washington to a non-union facility in South Carolina for discriminatory reasons.”
Sens. Lamar Alexander (R-Tenn.), Rand Paul (R-Ky.), John Thune (R-S.D), Jim DeMint (R-S.C.), Lindsey Graham (R-S.C.), Mike Enzi (R-Wyo.) and John Barrasso (R-Wyo.) warned against shutting down the South Carolina plant fearing negative economic effects.
“We want to make it easier for Boeing and Motorola and Westinghouse and Nissan and Toyota to build in the United States what they sell in the United States,” Alexander said. “NLRB’s action is making it easier for manufacturers to look at the United States and say, ‘We’re going to build overseas’.”
The bill, introduced by Rep. Tim Scott (R-S.C.), would “prohibit the National Labor Relations Board from ordering any employer to close, relocate or transfer employment under any circumstance.”
“It’ll be hard to continue to make products in America if the NLRB can tell a company after they make an investment, ‘By the way, we’re going to veto your decision’,” Graham said. “The amount of power that this would give an unelected bureaucracy in an American economy is chilling.”