Push for sales tax on all online purchases
Peter Johnson, Jr. weighs in
- Duration 3:02
- Date Aug 2, 2012
Peter Johnson, Jr. weighs in
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This transcript is automatically generated
If you shop online and everybody I know does you know it's cheaper that's usually because.
Taxes don't come into play but now the federal government might change that to help close.
The budget -- so is that fair do you Fox News legal analyst Peter Johnson junior is here with me.
Here it's those senators in Capitol Hill.
And a lot of us consumers -- -- looked like so of those Olympic I have.
Athletes making faces when -- really understands that calling -- the marketplace.
Fairness act and what they want to do was require.
Online retailers to collect sales tax from the state to which a product is being sent to.
So if mind buying something.
In California right.
And the retailer is in New Jersey -- but I'm sending it to say Wyoming.
Or New York.
Then I've got to -- the New York sales tax because that's where it's going to wind up.
And so people like senator Jim Demitra and a couple of others are saying in the senate hey listen this is really in effect an Internet tax.
This is in effect the the ability of states to tax people in other states this is taxation without representation.
And this is the state government going wild try to close their budget.
Gaps right on the backs of consumers.
That are going.
Sure so we showed it help if if the company you're buying from the safe from New Jersey right and you live in New Jersey.
Then gonna pay the sales tax that makes it okay and a lot of online retail is still in fact.
Collect sales tax but now they want to set up this.
By which the state capitals in Washington gets together and says no we're watching you -- pay those sales tactics were.
And why is -- senate doing this it's because that's where people shop these days and it's a gigantic loophole they feel they need money to fund -- it.
Peter go ahead I'm going to quote does say in court stated it's -- -- -- Supreme Court ruled in quill vs North Dakota in 1992 that retailers can be required to collect state sales taxes.
Only in states where they have the physical presence that proved -- point.
It does prove my point but also you can pass a law.
That over rules the Supreme Court.
And that's what they're trying to -- this -- the Internet has become explosive.
That this is a terrible loophole it's helping all of us the critical question becomes.
How do we balance states' interest on bloated budgets right -- economic growth do we want to stop people from buying on the Internet.
Right is that what we want to do they say we want to protect the small business person in America who -- getting beat up.
By these online sales -- the numbers don't really show that in my view.
All right very good and they just want a piece of the pie because a lot of people are -- -- on -- tax tax tax reputation -- though they go Daria thank you Peter Johnson.