The Internet sales tax is back, and it could be the next big vote in the Senate.
The proposed law would enable states to force businesses to collect sales tax from customers who live in their state—even when the businesses have no connection to that state.
As Heritage President Jim DeMint has said, this violates the classic American principle of “no taxation without representation.” Retailers would be forced to act as tax collectors for states in which they have no voice.
Under current law, retailers are required to collect sales taxes only in states where they have a physical presence. But Senate Majority Leader Harry Reid (D-NV) is pushing for a vote on a new Internet sales tax that would hit all online businesses—no matter where they’re located.
“Consider the absurdity of such a law. When a customer buys a product in a store, does the cashier ask for the customer’s home address? Of course not. The store simply charges the state and local sales taxes applicable for its physical location, no questions asked.”