WASHINGTON, D.C. (WCBI) – The United States Senate has passed the internet sales tax proposal, that could pave the way for shoppers to pay sales tax on most online purchases. Monday, the Senate voted 69 to 27 to levy a sales tax on online purchases. The proposal now moves on to the House. It something the business community has expected for quite a while, but not everybody is happy about it.
“And I have already called and shown Senator Wicker and Senator Cochran my displeasure of them voting for this,” said gary Chism, (R) Rep, Ms Legislature.
“So this Market Place Fairness Acts as its called would attempt to make this a federal issue and require everyone in every state to collect sales taxes if they have more than one million dollars of sales outside of across state lines,” said Mike Allen, Shopping-Bargains.Com
Allen, who operates Shopping-Bargins.Com realizes that so-called brick and mortar retailers with an online presence like Wal-Mart and others already charge sales taxes. As an online affiliate of a major business, Allen is closely watching the proceedings in Washington.
“I think it will effect Mississippi more than a lot of states because we will suddenly have to pay sales tax at almost everything. We’re right now, we don’t have to. So that’s instantly a seven percent increase in our expenses,” said Allen.
“I think we are taxed enough already. I think if you send more down there,it’ll just make us find something else to spend it on,” said Chism.
“We are an affiliate of more than fifteen hundred different other retailers. So if we get dropped by a third of them then that, or even 10% that gets to be real money. So thats always been an issue over the past few years,” said Allen.
So as we watch the GOP controlled US house of representatives with one eye, we must keep another eye on one local lawmaker, who is a little disappointed in the actions of his republican colleagues.
“So we are hoping that the United States House will oppose this and so that really it becomes moot when it comes to the state legislature. But if it does, I will lead the fight against raising taxes,” said Chism.
The Obama Administration has endorsed the bill, so if it gains approval in the house it likely will become law. Its one to keep your eyes on.