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Dick Durbin Eyes Internet Sales Taxes

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Senator Dick Durbin is pushing a piece of legislation that would introduce an Internet sales tax that would make it necessary for sales online such as Amazon and Overstock to include state sales tax.

Durbin, and his plan want to even the playing field because he finds it wrong that out of state companies making sales to customers in state pay no taxes while brick and mortar stores have to pay state taxes.

As it stands now, people around the world can buy online, especially in the US where each state can purchase goods online from other states.
In these transactions, purchasers aren’t required to pay sales taxes.

This is considered one of the main reasons for internet sales booms but also is seen as taking away revenue from states as the competition between online stores and real, physical stores aren’t in parity with the taxes.

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Durbin would want there to be taxes.
One of the main problems with this is that there are thousands of various tax jurisdictions and it gets very confusing.

Senator Durbin may have his heart in the right place but if this legislation passes, it may turn out that major online companies just won’t do business in jurisdictions that have such tax laws.

The web community might not want to go for such taxes and then they may. It’s going to be a long and drawn out testing of what is taxable and what isn’t. This is going to be one weird and difficult thing to keep track of and there will be no doubt as to the controversies involved with implementing it.

It would be best if the legislators and online business communities think this out carefully to ensure that not only are all parties involved equitably in balance but that it doesn’t lead to more trouble than it’s worth.

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