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Online Sales Tax Bill Passes Senate
WASHINGTON — The Senate sided with traditional retailers and financially strapped state and local governments Monday by passing a bill that would widely subject online shopping – for many a largely tax-free frontier – to state sales taxes.
The Senate passed the bill by a vote of 69 to 27, getting support from Republicans and Democrats alike. But opposition from some conservatives who view it as a tax increase will make it a tougher sell in the House.
President Barack
Obama has conveyed his support for the measure.
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It's going down in the HOR.
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I could be wrong but-----but you might be right - this bill might die in the House which, of course, would be more proof of my theory that the House's IQ is a collective 20 points lower than the Senate's.
OTOH, the bill has bipartisan and retailer support on both the federal and state levels.
My prediction is; Republican resolve for "no new taxes" will wilt under the pressure from big Republican contributors like Wal-Mart.
Merchants, bankers, small businesses, bizarre coalitions, Dick Durbin and Mike Enzi: The Senate is re-enacting its
great swipe fee battle of 2011, but this time the issue in question is whether online sellers should have to pay sales tax just as brick and mortar retailers do.
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That Congress is even dealing with the online sales tax issue is an example of how the need to raise campaign cash helps set the agenda. As one moderate Democratic senator put it
during the swipe fee fight, "I'm surprised at how much of our time is spent trying to divide up the spoils between various economic interests. I had no idea. I thought weÂ’d be focused on civil liberties, on education policy, energy policy and so on."
"The fights down here can be put in two or three categories: The big greedy bastards against the big greedy bastards; the big greedy bastards against the little greedy bastards; and some cases even the other little greedy bastards against the other little greedy bastards," the senator said.
Both the swipe fee and online sales tax efforts were cosponsored by Sen. Mike Enzi (R-Wyo.), and involved
unusual bipartisan coalitions. In order to win over enough Republicans, the argument that the the online sales tax bill does not create a new tax has been central to its advocates, who have taken
to describing it as a "due tax," a term coined by Rep. Steve Womack (R-Ark.), who is handling outreach to fellow Republicans.
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