WASHINGTON – A bill that would end tax-free online shopping passed
the Senate but is expected to hit stiff resistance in the House of
Representatives, the Associated Press reports.
Opponents to the bill portray it as a tax increase and one
that would burden small online businesses. Supporters say the bill would
generate much-needed revenue for states.
"It's probably more complicated in the House,"
said U.S. Rep. Steve Womack (R-Ark.). "There's a lot of political
difficulty getting through the fog of it looking like a tax increase."
The bill would end the price advantage enjoyed by online
retailers over brick-and-mortar stores. While many House Republicans are
sympathetic to that notion, they are reluctant to embrace a bill that voters
could see as a tax increase.
Some
leading Republican lawmakers have been silent on the issue. Speaker John
Boehner (R-OH) has taken no public position on the Senate bill, and House
Majority Leader Eric Cantor (R-VA) has not indicated how he will vote.
Some companies, like EBay, have said they would like to see
the threshold for exempting sellers raised to $10 million from the Senate
bill’s $1 million level.