Brace Yourselves, The Internet Sales Tax is Coming

Everyday it seems more and more inevitable. Now it's to the point where we just need to accept it: you will soon have to pay sales tax when purchasing things on the Internet.

The Senate passed a bill, called the Marketplace Fairness Act, earlier today that would allow states to collect taxes for online purchases. Previously, States were unable to require online companies to collect sales tax unless the store had a physical presence within the state. Technically, the consumer is supposed to report the purchases and pay the taxes himself, but this happened an estimated 0% of the time. 

Then, States realized the online marketplace brings in about $226 billion a year. That, combined with technology which has made it easier to handle all the different tax rates and rules, the states, along with retailers like Walmart and Best Buy, say it's now time for online businesses to take on the same responsibilities as their brick-and-mortar counterparts.

The bill still has a ways to go. It is supported by Obama, and has now passed the Senate, but must still pass the House, where Republicans have the majority, and are also divided on this issue. Some see this as a tax increase, including Republican Representative Tom Graves who said "Call me a conservative, but I believe the right approach to tax fairness is to reduce rates, not force higher rates onto others." Meanwhile, two influential Republicans, Colin Hanna, and Al Cardenas sent this memo to GOP House members, urging them to pass the bill: “No one is in favor of piling new tax burdens on hard-working Americans, least of all the two of us, and this bill does not impose any new taxes. As conservatives, we must a) ensure that all businesses and entrepreneurs are able to compete under the same rules on a level playing field, b) that the rule of law is upheld and c) affirm the principle of federalism.”

It is worth noting that the bill would not instantly create and Internet Sales Tax in each state. Each state would need to individually create their own tax system for the Internet, or pass a bill expanding their current system to the Internet.

But come on, you just know this bill is going to pass. And if not this one, another one will come along. Taxes have a way of creeping in everywhere, whether you like it or not.