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Internet Sales Tax Bill Will Pass in the Senate.

Written by Gary North on April 26, 2013

It’s almost here: a new sales tax on Internet purchases. The Senate will vote in 11 days. The preliminary vote was 63 to 30.

Then it will go to the House. If the House passes it, Obama will sign it into law.

You and I will start paying sales taxes on orders from companies that are outside our state. Businesses will have to start collecting taxes.

This will add a paperwork burden on businesses. They will have to track all sales in every state. They will have to make payments — different percentages — to all states with sales taxes.

It’s a tax hike. Make no mistake about it.

If the public sits there and does nothing, it will start paying more for whatever it buys online.

If House members think that the sheep will sit there and be sheared, a majority will pass this bill.

If you want to contact your Congressman, and you don’t know his name, here’s how to locate him: http://www.house.gov/representatives/find/

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83 thoughts on “Internet Sales Tax Bill Will Pass in the Senate.

  1. goldendragon2012 says:

    What's the next logical step? For business to move their operations off-shore?

  2. I thought all tax legislation had to originate in the House. What is going on, why don't these Senators follow the rules…Throw the bums out !!!!!

  3. RegulatedToDeath says:

    I am not an internet business person, but I have recently started a small business. This will make it almost impossible for small businesses to compete with the likes of Amazon (and even Amazon will have to enormous expense in time and resources to comply).

    A small business selling on the internet would have to register as a business and collect/pay sales tax in every city/town, county, state, and country where their customers are from. I recently registered in 1 city and it took a few weeks and a couple hundred dollars in fees. Then you have periodic reporting/filing requirements and you have to keep track of any changes in laws affecting each location you do business in. Now multiply that by the thousands of municipalities in the US alone.

    Although it sounds fair, it is unworkable and unenforceable. It will also hurt the main street businesses that have supplemental income from internet sales.

    If they want to level the playing field, remove the taxes and regulations on the main street businesses.

  4. FRENCHIE says:


  5. Is this a Federal or State internet sales tax ?

  6. vietnamvet1971 says:

    I will STOP buying off the Internet.

  7. That is what Amazon and Walmart want you to do and the reason they are heavily backing this bill. Amazon already has operations in all 57 (just kidding) states, so it's not a big deal for them. Each branch only has to know the rates and rules for its own jurisdiction. EBay, on the other hand, will cease to exist because people like you and I have no means of applying for sales tax certificates or can possibly know the rules and rates for all 9500+ taxing entities in the US. Call or email your Senator FIRST and then your US Rep. ONLY public VOTER outcry will stop this from happening. I already have.

  8. It only applies to businesses with more than $1,000,000 in annual sales, so don’t get your panties in a twist. Gary is just fear-mongering yet again.

  9. It’s pretty obvious you didn’t spend one day in college. You didn’t have to confirm it.

  10. jamesbbkk says:

    The AP article purports that "some" consider it a tax increase. That cannot possibly be true. Our current president assured us he would not raise taxes on those making less than $100 k or was it $250 k? Don't worry though. These corporations will have to bear this cost. What's that? Corporations are tax collectors, not taxpayers? How could that work?

    If it passes, go long Amazon, small fries will be toast just like those that have been collecting sales tax and paying property tax, too, until Amazon made it much easier for us to get good stuff at good prices.

  11. jamesbbkk says:

    All caps text is not readable or cool.

  12. Apparently you are a SHILL for somebody, the way you are attacking REAL AMERICANS for expressing their concerns over " JUST ONE MORE STEP TOWARDS 1984". I don't want the government to have control over my " PURSUIT OF HAPPINESS "

  13. Rosemary says:

    All bills that pertain to revenue must originate in the House of Reps and not Senate. So, already it is illegal. What a shock!

  14. mattzweck says:

    Most democrats love taxes. they can tax the Cr@p. Out of everything. So we can’t afford.anything. Watch alot more businesses will leave.California.

  15. Robert Rose says:

    I work at a small business. This has to be a blessing. I can't count the number of times that I've heard that a customer bought something he could have purchased from us on the internet because he could get away without paying the sales tax. It is high time the playing field was leveled between internet sales and brick and mortar sales.

  16. Idiot quote from one or 2 days back from my RINO Senator (not yet moss-covered, though the other one is)

    Call up these idiot Senators and tell them NO, on the internet tax bill, NO, NO, NO!

    "This bill has nothing to do with imposing any kind of new tax or revenue generator," said Sen. Bob Corker, R-Tenn.

  17. Shane go troll somewhere else the people on this page actually have a brain and use it!

  18. I don't know if you've heard of this or not, it was on one of the morning news programs this morning, Amazon, and other on line sellers are already being approached by little company's that will collect the Taxes on their sale's for a fee, a small fee but a fee just the same. This way Amazon doesn't have to worry about how to collect or even if the Tax is collected, they just pass the cost of this fee and the Tax on to the customer. The plan is; all of this will be added as part of the shipping and handling "fee's", but including the Tax. If the government wasn't trying to drown us in Taxes already this wouldn't matter. What gets me is most young people keep saying "Well It's Just an Extra 6 Bucks, That Ain't Nothing" They don't understand that once the Tax is applied the Tax amount can go up, the same as the collecting Fee.

  19. Read the bill. I only effects businesses that sell over one million in on-line sales only. That is not most small businesses. It seems to me it will help the small businesses like mine. I am not close to one million.

  20. Nathan K says:

    In WWII the income tax was ONLY applied to the wealthy (sound familiar?) It was only 1% and only supposed to be temporary. So let me ask you this how did that turn out?

  21. Its state tax. So businesses would have to remit on a monthly basis to each state they sell in, to collect at that rate and do the monthly filings and remittances to each state.
    The business would be paying an arm and a leg to their accountant unless the owners can do it themselves.

  22. Robert,
    Are you sure you are a business owner? Maybe you should stop crying fairness and take care of yourself!! Start selling online as well – put your brick and mortar to use as a place to store inventory and process internet mail orders / packaging.

  23. Yeah, so what does this do and accomplish? What business owner here wants to be told only how successful they can become? This creates an incentive (HUGE ONE) to limit the size of your business. In other words they are limiting the size of your success by punishing you if you get to a certain sales volume. They already punish business owners enough. What is the point of being in business? To hopefully someday with hard work and determination become a larger business. At 1mil gross sales (nothing) – this is a HUGE burden, that is in essence a small business.

  24. I said this before but will say it again. In WWII they Government started an Income Tax to help fund the war effort. This tax was supposed to be temporary, only on the wealthiest of Americans and limited to 1%. Looks like it is still hanging around, looks like it moved over to much of the population not just the wealthy and how many people on this page would like to see their taxes capped at 1% because to me it seems that expanded as well.
    (1) of course this bill is only aimed at one million is sales (for now)
    (2) Of course they will try to make this seem like it will help small business
    (3) Of course like other government ideas they are almost impossible to undo after they are implemented and they always expand in both size and scope. so what (3) means is today it is sales of 1 million tomorrow it is 1/2 million, the next day it is 1/4 million and pretty soon you want to sell something on Ebay it is you too

  25. Seymour Kleerly says:

    The alternative might be revolution in an even more immoral and unjust society.

  26. They forget that the only reason on line sales are competitive is that usually there is no sales tax on the product. Shipping nowadays cost so much that if you add tax to the sale it no longer is a deal! So go ahead bigshots (government) shoot yourselves in the foot, just dont cry when the sales on the internet take a dump!

  27. Seymour Kleerly says:

    The term "Real Americans" sounds like you follow Sean Hannity and Sarah Palin. They and other cretin Righties are the reason the Conservatives are toast. Please keep it up.

  28. It was a long time coming. It was nice while it lasted.

  29. pappap42 says:

    Well they got away with it in oBUMocare, and with the Roberts court it will work again.

  30. pappap42 says:

    That is the plan

  31. pappap42 says:

    Then get your sales taxes taken off of you and ask for the fair tax.

  32. ANY and ALL tax bills will pass in the demonrat dominated Senate , especially with the mental midget Reid in control of it .

  33. This President and his followers are doing everything they can (as fast as they can – as time counts down) to destroy this countries finanacial possibilites for so many of us. We need to try to replace them with others who are still Americans with our needs, not their "old Boy's Club" attitude that has kept so many unproductive persons in office long after they need to be there. How can millionaire know what we go through – how soon they forget their campaign promises, and where they came from.

  34. Bob Marshall says:

    Obama owns the Senate so the bill will pass. People need to remember these members of congress the next time they are up for re-election. Research and find out what they voted for and against while in office. " Now, more than ever, it is the people who are responsible for the character of their congress. If that body be ignorant, reckless and corrupt, the people tolerate ignorance, recklessness and corruption." James A, Garfield. Does this not pertain to our president as well?

  35. We should put up an initiative to ban ALL sales and value added taxes, thereby crimping this bit of treason in the bud! Sales tax is a sign of government INCOMPETENCE!

  36. Ronald Reagan says:

    It's just going to suck money out of the economy. States that can't manage their finances like California and Illinois will not be saved by this at all. States that are managing their finances now will just find cr@p to spend the extra money on! People can usually find a better price online anyway, only now their households will have less money to spend overall. Again, the only thing this will to is to SUCK MONEY OUT OF THE ECONOMY!! Contact your Senator now!!

  37. Nothing is sacred when it comes to the government and their overeaching at getting more taxes from us. I for one has contacted by reps. I hope this helps. although I do not have much hope in changing anything that the Obama camp is doing. We so far won on our Second Amendment battle but the war continues.

  38. S. Wolfgram says:

    Now I am confused, I heard the other day that this tax is not a sales tax but a tax on the internet itself. Unles the sales tax is a federal sales tax it won't be able to help the government. But a federal tax on everyone's internet bill would certainly benefit the government. Can someone explain this to me?

  39. Some people I guess wioll NEVER get it no matter what. Idiot.

  40. kibitzer3 says:

    And while you're at it, anybody, help me out, too, because I don't understand: If I live in a state with a state sales tax, and travel to a neighboring state that has no sales tax, and purchase an item there, I pay no sales tax on it. Why should I have to pay a sales tax on an item that originates outside of my state just because I purchased it on the Internet, instead of traveling there in person?? If that Internet company is domiciled in a state with no state sales tax, why should they have to keep track of where the people who purchase their products are domiciled??? They could possibly have located in such a state, instead of a state with state (or also local) sales tax. And that's one of the advantages of a federal system of government: the states can be laboratories for various activities. I smell a rat in this thing: a way to begin to break down the identity barriers between states, and turn the nation into simply one monolithic entity. No thanks. But what's the answer to my question, before I start jumping to conclusions??? Thanks.

  41. they understand very well, it's their plan to bankrupt this country, which will cause riots and looting. To bring order ,they will have the U.N, to bring tanks and men in this country and call marshal law and that will suspend the constitution, so that means the U.N. will be in charge. this is the new world order, you see we're the only super power left in the world, you can't have a one world government as long as you have a super power nation, they are killing off our young men and women through the wars, soldier's being sent back time and time again, I'm not saying this,but I would not be surprised if our government had something to do with 911 so they could start these wars so they can change leaders that will go along with the new world order. Global economy, global community. that's why there trying to take away our guns

  42. Oldmonkey says:

    A little off Grasshopper,

    Products will be ordered by catalog number using a phone, Skype, as mail order using gift card or check if necessary. VPNs can be used to make any purchase appear out of taxed state or country. Businesses will buy goods in states without sales tax for branches in states that are. I'm sure YesAsia.com will quickly reconsider having a California office having seen sales drop on Chinese CDs & DvDs. Perhaps they will move to Texas.

    Old Monkey has the Dragon King's staff that measures the oceans, and has seen things go in circles with a twist a few more times than you biaodi.

  43. Oldmonkey says:

    My cousin Goldendragon is off point but has the right idea. Instead of buying online after viewing what someone wants, they buy by phone, or on Skype. With a VPN you can just as easily be out of the US. If they get anal checks can be sent by mail using "catalog number" Like my Chinese CDs, they will be shipped by mail.

    Old Monkey has the dragon king Au Gong's staff that measures the oceans

  44. They've already done that, starting in 2006 when the dems made it harder to do business in this country.

  45. I think they want to do away with ALL commerce period. They are communist enemies of our country starting with the clown in the WH.

  46. I don't even HAVE a "business" online, but I sell a few things on Ebay both for myself and a non profit I'm president of. I'm barely squeeking by now….if they start taxing me to death I've got nothing to help supplement my income while waiting for the commies to be voted out of office. IF indeed we'll be allowed to vote next year or in 2016.

  47. How can it be a "state tax" when the Feds are instituting it?

  48. Why would Amazon back this bill? Most of their sales are internet. Walmart does a large internet business too. I've already emailed one of my reps in congress. This would be outrageous, but alas I think it's another way for BO and his "comrades" to quash "business" in this country for good.

  49. Oh..that's right I forgot. Obama is the last word on who can make WHAT amount in this country. He sucks!!! You know twisted panties and fear mongering aside, don't you think if this passes that it would later be ammended? Just like BOcare……it's a bad smelling red herring. But then again……are YOU also on the side of killing all business and having the "proletariate" be totally dependent on BO's regime government?

  50. Please move to Viet Nam "comrade". Your form of govnernment sucks and won't work here.

  51. The income tax goes way further back than WWII. Try the civil war then just before WWI. http://www.infoplease.com/ipa/A0005921.html But I agree with everything else you mentioned tho. 🙂

  52. And with comrades Pelosi…..they'll "pass it before seeing what's in it".

  53. Yeah….the left wants to complain about "corporate fat cats" and how the rich are evil cuz they're rich. Well….at least those "cats" EARNED their wealth unlike "government fat cats" who become wealthy of OUR dime. They are worse in the "fat cat" world.

  54. What money…..and what economy? BO's regime is trying to get that to zero.

  55. I think you are correct. I think BO's regime wants a soviet state and the disolving of our states into "sectors". I think his plan is to END the USA, scrap/do away with the constitution and bill of rights and replace it with marx's manifesto and declare a police state. Have to totally disarm us first tho.

  56. MetaCynic says:

    Who's going to enforce this tax and how? If an internet merchant residing in state X doesn't collect and pay the sales tax for a customer in state Y, how will state Y force that merchant to pay up? Extradite him to stand trial in state Y? Will this become a tax for the feds to enforce?

    An internet merchant can even cut his prices say 5% and then collect a 5% sales tax for state Y but never hand that money over to state Y. The customer is no poorer as a result of this. How will state Y find out which merchants all over the U.S. owe them tax revenue and how much? Will each state audit the books of every internet merchant? This tax will be a bookkeeping nightmare for internet merchants, but it could also become a collection nightmare for states with a sales tax.

  57. kiss the internet goodbye i will save an they will lose

  58. Let's see, if a company has a 6% profit margin – a level considered obscene by many when talkingabout Exxon and Walgreens – so let's be consistent – 6% is thus OBSCENE – so the owner sells $1,000,000, and makes 6%, or $60,000. Must ne one of the "1%", so let;s tax them.
    Anyone who supports more taxes, please show when the Feds ever took more than 21-22% of the GDP. Every time they raise taxes, the playing field changes, and the net (i refuse to call it INCOME- that implies your worked or created) to the Feds remains 21-%.
    SPENDING is the problem. We are now spending at 23-24%. Anyone,except a politician who wants to be exempt from "Affordable Care" – different blog topic – should see this. King George taxed us at 13% and we fought him.
    Are we a lesser people than those in 1776?

  59. Dan in NH says:

    Obamacare has cut hours of restaurant workers to no more than 30 so they can get under the Obamacare limit.
    Obamacare has cut the number of workers to under so many to stay under the Obamacare limit.
    All I see is Obama killing jobs by his idiotic schemes.
    Now this tax will cut jobs more.
    Everything Obama the Great has done is kill small businesses and increase taxes. Yet there is no increase in revenue because jobs are going away.

  60. America it is time e everyone wakes up and cleans up the mess in Washington, we have a chance to start in 2014, then again in 2016! It seems that they sit around up there ( after they have bankrupted our country with reckless spending) and look for more things to tax to run us deeper in debt.

  61. In the current market, internet providers have the advantage of being exempt from State sales taxes; while some claim that this takes away from "brick and mortar" small business in the States, they aren't considering that the internet provider is charging for postage/shipping costs. It is my experience that the additonal shipping costs pretty much balance out the cost to consumenrs for buying on the internet vs. buying at home.
    My work (as a consultant) means that I am "on the road" much more than at home, and I find the internet a great way for me to take care of gifts for birthdays/anniversaries, etc. It also lets me buy what I need for projects at home, and have the needed stuff available on my weekends. Most of what I buy on the internet, is NOT AVAILABLE locally. Whan I am at home, I always favor local merchants over internet buying if possible.
    I see no significant value for local merchants coming from this proposal, and great harm to small business that relies on internet sales for survival.

  62. CrustyOldGeezer says:

    ALL tax laws have to "originate in the house of representatives".

    It will be interesting to see if boehnor and crew declare it dead before it gets sent over on Constitutional grounds.

    IF it gets passed and signed, and IF it goes to court on Constitutional grounds, will any judges care?

  63. jbrigham says:


  64. vietnamvet1971 says:

    Already called my congressman's office and let the lady know how I feel about their TAXING, Money Grabbing, Leeches move to Steal more of our money.

  65. Hera Sent Me says:

    A computer can easily sort it out, and anyway only businesses with sales in excess of $1 million will be affected.

    As a brick and mortar business owner, I think it's overdue. Why should I operate at a 8% disadvantage to out of state competitors? I employ people locally and buy supplies and equipment locally. Those guys don't.

  66. Coldcowboy says:

    NEXT, A tax on the air we breath!

  67. catlanding says:

    They can print all the money they need. They're taxing us for sheer oppression.

  68. ALL AMERICAN says:

    These morons try to hurt law abiding gun owners with gudn control… Now, they wish to hurt ALL small business owners!
    This is all by plan to enslave and make subservient drones of us all.
    Fight Back, to those of you whom have a spine, void of yellow tint.

  69. I've read about the income tax that was implemented during WW2, it was called the Mickey Mouse Tax. The tax code in sec 861 is taxable income, read it, it says Americans have NO taxable income. So why the hell are we paying for it?

  70. The only thing in this bill that is even remotely good is that it specifies that record-keeping must be in English. You don't have to be able to speak or read english to vote, drive, or if Obama has his way, be granted amnesty. But these lawmakers will require honest coin store owners to keep their records in english. But the bill doesn't say what kind of english. I wouldst recommendeth to you coin dealers, thou shouldeth become as obstreperous as possible, by keeping thine records in Olde English, so as to maketh the reading and the understanding of thine records as laborious as possible for the government spooks. Also, use big words that will force the low-intelligence government workers to stop and look up a word every minute or two. After all, we are talking about government workers. Confusing them isn't difficult.

  71. If everyone had been paying the tax already, we could save a lot of hassle. You check the 'out of state purchases' on your state tax form.

  72. Ebay is jacking up its rates for the sellers to 7% across the board on May 1, plus the 3% paypal, that is a tax already and ebay wants us to fight this tax bill? The cash economy is going to grow now for sure, so the feds and states will have to do a lot more audits.

  73. Freedom_road says:

    You are welcome to send all of your income to the government if you like, but I guarantee they will still want more!

  74. Freedom_road says:

    Why would rules and laws suddenly be important for this issue?

  75. Freedom_road says:

    Why are they constantly trying to come up with more schemes to take money out of the pockets of the few remaining employed people!? Why are they not working as hard to cut spending? You see they never will and don't actually want to cut spending!!! Our government spends 100% of its time trying to destroy everything that once was good in this country!

  76. Nancy in SC says:

    I am one of those people who started a small business when I couldn't find a job. We don't even have open fast food positions in my area.

    Like around 20% of small business owners, I did not collect a pay check last year. Prior years were better, and this year is must worse. My savings are exhausted from trying to tread water until the depression ends.

    Between the poor economy, Obamacare and new tax laws, I and many others like me are in the process of closing our small businesses. You won't be hearing about us, because past business owners are not counted in the unemployment tallies.

    I am not giving up, I am just starting over at 61 years young. Not the first time I have been broke, but never have I had such an unsupporting government. It makes me sick to know my tax dollars are supporting failing large companies, illegal immigrate benefits, coddled prisoners in cushy cells, welfare moms who can afford lots of bling, politician perks, foreign aid to our enemies, etc. I don't need a hand out, I just don't need all the road blocks to success.

  77. armedandsafe says:

    Most states have law that residents must pay sales tax on things they buy out of state. At most, all the internet seller should berequired to do is report purchases and prices to the purchaser's state agency. It would then be the duty of the purchaser to pay the tax or expect the State to visit, requesting payment of the tax.

    I don't think it should be the function of the Federal Government to pass a specific law mandating this action of internet sellers. I am POSITIVE it is a killer to require all internet sellers to collect and remit taxes for States other than the one in which the seller is located.

  78. Whether it is on $1,000,000 or $1.00 it makes no difference it will increase the tax burden on everyone. When has the Gov't. ever stopped at the beginning of a tax? Answer NEVER. They see the income trickle in and want a flood so they lower the ceiling at which a business would be paying tax until they trap everyone.

  79. Gloria P. Sterling says:

    It's called "greed" for the taxes of law-abiding citizens to have to give up more. "Greed", that is, on the part of those who pass these laws.

  80. pappap42 says:

    We know how the Roberts court would rule. JUST GO FOR IT.

  81. pappap42 says:

    And she said , what you talking about.

  82. Bruce M. says:

    Internet sales are part of the 'shadow economy' that's keeping this country afloat. By taxing it, our so-called 'elected representatives' will be placing us on a fast track to a economy like Greece.

    It's beyond me why people keep electing and reelecting ANYONE that would do this to us. The people of this country are either CRAZY or FOOLS, or BOTH!

  83. So, if Mindy sells an item on EBAY, she has to collect and send sales tax to each state. So she sells a $3 item and collects 18 CENTS SALES TAX. She has to secure the forms for each state to send in the sales tax, write an 18 CENT CHECK, spend an hour preparing everything, affix a 46 CENT STAMP to an envelope and then put it in the mailbox, or even worse has to drive to the post office to get a stamp, actually a bunch of stamps so she will have one when she sells her next item.This is so stupid.

    These democrats keep finding new ways to tax something. They are also talking about taxing the internet with a luxury type tax. They have already come up with a bunch of new taxes attached to the new healthcare law, including a tax on your health insurance policy.