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Congress is Considering Bill to Impose Sales Tax on Online Purchases

Will this change your purchasing habits?

As everyone debates the great partisan divide in the federal government, there is some bipartisan legislation moving along in Congress without too much opposition from either side of the divide. If passed, the bill being considered would result in about 5 to 10 percent sales tax levied on purchases made over the Internet.

While this would level the playing field for businesses with a presence outside the virtual storefront, it would be a hardship for the U.S. consumers who, according to a recent story on CBS News, spent more than $200 billion in online sales last year. A reported 53 percent of Americans shop online, spending an average of $1,200 a piece. This is expected to rise to 58 percent by 2016 with an average expenditure of about $1,700 a piece.

Supporters, both Democrat and Republican, claim it is all about states' rights. If the bill passes, it would turn the issue over to the states. However, many believe it has a whole lot more to do with the substantial revenue that would flow into depleted state coffers that it has to do with states' rights. CBS News reports that if passed, it would raise an estimated $23 billion in additional revenue for states.

But at what cost?

According to Steve DelBianco, executive director of NetChoice representing Internet companies, the bill would weigh down thousands of small online businesses in a confusing web of new taxes.

"The big loser - small businesses," DelBianco told CBS News, "The same small businesses we're counting on to create the jobs to pull us out of the recession."

What do you think about this legislation? Do you think it's about states' rights or just another source of revenue for governments? If it passes, will it change your online purchasing habits?

Athens Mama September 18, 2012 at 12:44 AM
@Chris and John B - I don't have any problems agreeing with George Gibson...John B - I have a mission as a blogger, and that is to educate those who do not have the opportunity to experience certain things, but do have the opportunity to vote on the issues. "She seems to be back and forth a lot" --- you are referring to??? This is a public forum trolls, and we all have a right to voice our opinions and experiences here....
Chris September 18, 2012 at 08:21 AM
AM, you say "I don't have any problems agreeing with George Gibson". It just seems that agreeing with George Gibson makes no sense. You also say that you are here to educate people? Seriously? You insult people, you call them racist and then your posts have to be deleted. Here's a clue... when you don't have anyone agree with you ever? It might be YOU who needs educated. As for George Gibson, he rarely posts anything here that makes sense. Actually, I've never seen George Gibson post anything here at all. Who is George Gibson? Thanks for educating us. See you at the country club.
Athens Mama September 18, 2012 at 09:35 PM
Meant George Wilson. Considering the number of posts from me, I would say less than 1% would need to be deleted. I'm going to keep giving you a window into public education in certain areas. Love it, like it, hate, see you around. Maybe at the country club.
George Wilson September 18, 2012 at 10:22 PM
@AthensMam The Congress would have to enact one uniform tax rate percentage for all states for this to work.
George Wilson September 18, 2012 at 10:30 PM
@ Chris We vote ,give money and run for office.

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