“The halcyon days of tax-free Internet shopping will, if Rep. Bill Delahunt gets his way, soon be coming to an abrupt end.”
“Delahunt, a Massachusetts Democrat, introduced a bill on Thursday that would rewrite the ground rules for Internet and mail order sales by eliminating the option for many Americans to shop over the Internet without paying state sales taxes.”
As some argue that Minnesota loses millions in sales tax revenue due to untaxed internet sales, they often ignore the fact that it is Minnesota consumers that would pay the sales tax. It would be a tax increase for those consumers. Tricky issue as there is the fairness aspect, and the cost to Minnesota internet businesses in reporting and collecting sales taxes for 44 other states.
Read a commentary from the Harvard Business Review here.