Internet Tax Bill Facing Tough Road in U.S. House

A Senate-passed bill to end tax-free online shopping is expected to face stiff challenges in the House.

May 07, 2013

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.

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