Congress Not Looking to Pass Internet Sales Tax Anytime Soon

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Ever since the Internet became a worldwide sensation, there have been those who think it should be taxed, especially Internet sales from state to state. Taxing the Internet would be a huge source of extra revenue for the government, but for those who use the Internet to shop (which is just about everyone these days), those taxes would be a real headache.

However, the latest attempt at taxing the Internet may not be going anywhere. That’s because the Main Street Fairness Act, a bill that would allow state and local governments to charge and collect taxes on Internet sales from companies that are located in another state, has run into a brick wall in Congress. The bill already passed the Senate in May of 2013, but so far Congress has not jumped on board.

Even though the bill will not be moving forward this year, according to Speaker of the House John Boehner, proponents of the bill could always bring it up again next year, but it would have to start over fresh in Congress.

Those who oppose the bill claim that it will be another tax on consumers who use the Internet to shop. Plus, for those companies who sell online, the price to set the system up to collect those taxes would be costly.

For now, though, taxing the Internet is still just an idea and not a reality. The debate will assuredly rage on in Congress, but whether or not it ever becomes a reality is still to be determined. Meanwhile, you can contact GROCO at any time for all of your tax planning needs by clicking here.

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