- Congress considering new Marketplace Fairness Act to allow states to force tax on internet sales
- Amazon already making deals with individual states to collect a sales tax
- Online shoppers currently do not pay a sales tax
- Consumers are meant to pay a ‘use tax’ on internet purchases but few do
Quick, easy and typically cheaper thanks to being tax-free– the benefits of buying goods online are clear but internet shoppers could soon be hit with a new sales tax.
The threat to web shoppers is coming in from two fronts – Congress is considering new legislation that would allow states to force sales tax on internet purchases while Amazon is making deals with individual states to collect taxes regardless of what Congress decides.
Currently, online shoppers enjoy a 5 to 10 per cent ‘discount’ thanks to no sales-tax, which is implemented on goods brought at bricks-and-mortar stores.
If the new legislation – the Marketplace Fairness Act – is passed, states are set to rake in $23 billion each from online sales tax collections, burgeoning their financial health.