Battle in DC over implementing Internet Sales Tax

One of the last frontiers of tax free shopping could be in jeopardy due to a political battle escalating in Washington D.C. over implementing a streamlined Internet sales tax.

It's one of the biggest benefits to shopping online.
In Florida, there is no sales tax attached when you buy electronically from out of state.

Well, a member of Congress, Massachusetts Representative Bill Delahunt, said Thursday during a press conference that states are losing out on potentially collecting $23 billion worth of revenue and wants to change that.

It's described online as a battle between Main Street and e-Street and it's gotten ugly over the past month.

"Online-only sellers, without a local community presence or the desire to reinvest in our neighborhoods, are crippling traditional downtown retailers..."

That's a quote from the website promoting the Main Street Fairness Act.

The legislation is aimed at ending the unfair price advantage that online retailers currently possess who don't have to collect sales tax.
Nationally, 24 states are already in compliance with the Streamlined Sales and Use Tax Agreement.

"The purpose of the Agreement is to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance," says streamlinedsalestax.org.

In doing so, according to the National Retail Federation, it's protecting the mom and pop brick and mortar stores.

"The National Retail Federation believes in a level playing field where all merchants play by the same tax rules whether they sell their merchandise in a store, through the mail or over the Internet," wrote Craig Shearman, Vice President of Government Affairs and Public Relations for the National Retail Federation, in an email to Bay News 9.com. "We don't believe one merchant should be given an unfair price advantage over the other through tax policy."

A company against the idea is online retailing giant eBay.
Here's what they posted on Twitter as Delahunt had a press conference promoting the bill:

"National taxpayers union vehemently opposes new Internet taxes..."

Also on Thursday, the online retailers gained major political help from another lawmaker in Washington D.C. who proposed a counter legislation.
The Electronic Retailing Association is all for it.

"This legislation hits consumers with a new tax burden in these difficult economic times," said Bill McClellan, Vice President of Government Affairs for the Electronic Retailing Association. "If successful, this legislation has the potential to also limit the variety and convenience that consumers have come to expect when shopping electronically."

Both sides have political backing and major economic interests invested in winning this battle; and some would say it's the consumers who are stuck in the middle.