Internet sales-tax legislation racing through the Senate is likely to face roadblocks when it moves to the House, anti-tax activist Grover Norquist told Newsmax Tuesday.
“The reason we have a House and Senate is when you rush something through one body, you have a chance to think it through in the other body,” said Norquist, president of Americans for Tax Reform.“We’re making the case on the House side of either seriously amending it or even stopping it.”
The Senate is likely this week to pass the bill, which would greatly expand the ability of states to collect sales taxes across state lines on online purchases. Under current law, states can collect sales taxes from retailers only if they have a physical presence in the state — a store, warehouse, or office.
The Marketplace Fairness Act would allow states to collect taxes even if the retailer does not have a physical presence in the state.
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That's just wrong, according to Norquist, who describes the legislation as a massive expansion of taxing authority over businesses that have no recourse in the matter.
“You should only be taxing people who can vote for you or against you,” Norquist said.
The Senate voted 74 to 20 on Monday to clear the Internet sales tax bill for consideration on the floor, but on final passage it will have at least one high-ranking Republican dissenter.
Senate Minority Leader Mitch McConnell of Kentucky cited the difficulty for businesses to comply with the different tax codes in all the areas where their customers reside. McConnell says that creates an enormous advantage to large retailers who can afford such costs over smaller businesses.
“If states decide they need this revenue, they should keep in mind the tremendous burden they’ll be placing on the little guys who do so much to drive this economy,” McConnell said in remarks on the Senate floor. “In my view, the federal government should be looking for ways to help, not hurt, these folks.”
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