America may soon have Internet sales tax

By on April 13, 2011
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A US senator says online retailers have an “unfair advantage” over retail shops.

Americans may soon have to pay sales tax for every online purchase they make, if a certain senator has his way, according to CNET. Dick Durbin, a democratic Senator, is currently preparing a legislation called “the main street fairness act” that aims to introduce tax on online shopping.

“Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?” Durbin said in a speech in Collinsville, Ill., in February. “Out-of-state companies that aren’t paying their fair share of taxes are sticking Illinois residents and businesses with the tab.”

Currently, Americans are not required to doll out any sales tax if the online purchase is made from a retailer who is out-of-state. For example, a user in New York purchasing an item from an online retailer based in California will not have to pay sales taxes as he or she would have to if the purchase was made from a local retail shop. This, Durbin says, gives an “unfair advantage” to online shops. According to a research, 94% of Americans use online retailing, which is no doubt a large chunk of the population.

If the law is passed, this will severely impact businesses like Amazon and may very well put an end to any opportunity of getting better deals considering the shipment and now the sales tax cost.


About

Mufaddal Fakhruddin is the Editor for IGN ME and thinks writing in third person about himself in an about me section is weird.

Comments
  • Sharkfeeder

     ”Durbin says, gives an “unfair advantage” to online shops.”  Uh…no!  This gives a pleasant advantage, and an incentive to buy, to consumers whose income has already been taxed to high hell when they receive their paychecks!  

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