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Millions of Americans who shop online to save on taxes those days may soon be coming to -- -- the senate is set to vote next week.
And -- so called marketplace fairness act which would allow states to impose sales tax on Internet purchases supporters.
Including big box stores like Wal-Mart best buy and target say it will level the playing field between online businesses and brick and mortar stores.
But our own James Freeman says the bill is -- thing but.
Fair first real life is happening now they wanted to do this for twenty years.
Well I think the Republicans.
Feel bad that they can't on dole out a lot of spending the way Democrat also like to do when they were on the congress so there there -- some.
There's -- sense that they want Iowa.
Offer something -- they're -- -- the state and local governments have come to them asking for favors and this is a a big new way to collect so this is that this is happening now in large part because Republicans have switched the anti tax Republicans of legend.
Well are now saying we want a tax at the state level there is some of them have in the senate not so much in the house yet but even in the senate there's a question of how many votes this is gonna end up getting at the end of the day because I think the more people look at written and hasn't gotten.
Probably as much attention as it should.
And the risk reward is all wrong you're talking about.
Increasing what about an estate -- government tax collections by may be 1%.
And the downside at all but that that would that's what that -- you're talking 20/20 five billion years they'd spend two trillion so.
On the other hand 9600 taxing jurisdictions in the United States states.
If small retailers anyone making over a million dollars in revenue.
Have to answered all of those tax collectors.
It it could -- you might Mary I think -- you're.
-- earlier why is it moving now.
I think part of the argument is that.
Software makes it easy -- -- to argue forever you know what all these taxing authorities -- They say that 9600 figures scare figure because in fact -- that the bill stipulates that each.
Retailer only have to do with one tax auditor and one taxing authority that software you buy the software off the -- prevented the -- off.
Okay it if it works entirely his they claim that means fifty potentially fifty -- a year on -- on a business.
Having to deal with every state.
Now if it doesn't work the way claims and you might get hassled by thousands of taxing jurisdiction of Franklin County in Ohio and you're you're -- Lebanon Nevada good that's the -- did Tennessee department of revenue -- city of San Francisco bothering you for money I'm.
Be lead author of the bill his office says been.
-- reluctant to answer right and video of Wyoming Mike -- -- -- senator you question you know we put to them was.
Can the small business basically ignore letters from those 9600 governments if they come asking for more tax collections.
And that -- we've had difficulty getting a straight answer Kim what about this argument about fairness that the and mortar folks use and and -- they may have an argument as if if if I gotta pay 8% 10% more per good I get a charge more per per per item.
These guys out of state don't what trolley.
That argument well I mean that there is a fairness issue policy is exactly opposite of what -- set I mean look at.
Look at traditional brick and mortar stores now if you live in Massachusetts which does have a sales tax.
And you decide to drive across the state lines to New Hampshire which does not.
The stores that you're purchasing your products from the targets the grocery -- is always in.
They're not asking to see your driver's license they are not obligated to collect sales tax on behalf of Massachusetts.
And send it back to them.
But doesn't back what we are now asking online really -- to do instead so.
There is going to be a disparity in terms of what people are obligated to do it and that's actually the big -- Dan what do you think about Republicans doing the switch -- room.
I think it's dangerous I mean this is very this tax policy it's very difficult but I think the Republicans are getting put in a position they probably don't want to be in.
What is the point what -- the point -- all these sales tax -- the sales taxes support public activities are up there in these 9600 jurisdictions well most of these 9600 jurisdictions are over committed Stockton California has just declared bankruptcy.
Because of its public pension -- Stockton has -- sales tax of close to 9% in California.
So I think we'd -- to get your sales.
-- that's -- thirteen.
But there that basically incentivizing.
Taxes to rise across the board because that's what they're used for.
And what about this exemption that room.
Building it's a million dollars on small businesses.
It's a big enough I mean that's gonna -- that's -- exclude an awful lot of mom and -- it was an -- -- infinity I don't think this is gonna pass the house but let's say it it moves along and politicians wanna do some kind of compromise I think most members of congress understand one -- is too low if you're trying to protect small businesses from all of these tax collectors.
But -- what I'm told is the big retailers.
The wal marts in the targets really don't want competition.
Any anywhere above that that they are are very focused on that one million dollar level.
And so so a compromise that might be difficult here in and that's good because the plan should die the big guys like sticking it.
To the little -- -- oldest story every anti big government and -- sure all right.
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