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Martha Stewart: Let Each State Determine Its Own Online Sales Tax System

Harry Reid said this week that Internet sales tax is not a "meaningful" issue to Americans.

by
Nicholas Ballasy

Bio

April 27, 2013 - 6:10 pm

Business owner and television personality Martha Stewart told PJ Media that each state should determine its own online sales tax system.

Stewart was asked if she agrees with the Marketplace Fairness Act being considered in Congress, which would require Internet retailers to collect and remit sales taxes based on where the shopper lives.

For example, an online business located in Delaware, which has no sales tax, would be required to send sales tax to governments that impose such taxes if they make more than $1 million annually. However, retail stores in Delaware could continue to allow customers living in other states to shop tax-free.

Currently, states are only able to require Internet stores to collect sales taxes if they have a “physical presence in the state.” Therefore, many online transactions are tax-free.

“I don’t have really an opinion on that. I think each state has a sales tax and the state’s legislation has to determine what’s right and what’s wrong for that particular state and if there’s tax, there’s tax,” Stewart said of the bill.

Senate Majority Leader Harry Reid (D-Nev.) said on Tuesday that Internet sales tax is not a “meaningful” issue to Americans.

“The Marketplace Fairness Act, we have 50 senators, Democratic senators that voted for it and more than a majority of the Republicans. It affects three states — actually four, but Delaware is all in favor of our doing this. And they’re trying to protect their interests at home. But there’s — doesn’t cost the states a penny. Nothing. Zero,” said Reid on Tuesday at the Capitol.

“So it’s not — it’s not an issue that is meaningful. And the House, I’m told that the jurisdiction of that legislation is in the Judiciary Committee. Over here there was a hearing held by the Commerce Committee. There is no blue slip problem. So I think we’re in good shape on this bill.”

Web retailers like Amazon support the legislation while eBay opposes the bill.

“If Congress passes online sales tax legislation, we believe small businesses with less than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the burden of collecting sales taxes nationwide,” said John Donahoe, president of eBay. “To put that in perspective, Amazon does more than $10 million of sales every 90 minutes.”

Nicholas Ballasy is a video journalist based in Washington, D.C. His interviews with prominent politicians and celebrities have been featured by media outlets including Fox News, NBC News, ABC News, Access Hollywood, Inside Edition, the Washington Post. Follow his work at www.nickballasy.com.

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All Comments   (13)
All Comments   (13)
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To All PJMedia Readers:
Please don’t waste your time and energy on the likes of Zeke1. He/she has a completely twisted, skewed and perverted perception of reality. He basically sees the world reflected in a funhouse mirror.
1 year ago
1 year ago Link To Comment
I also view this as merely a first step toward a national sales tax.
1 year ago
1 year ago Link To Comment
I have a small store at CafePress. Most of my sells are within the two-month time-period before Christmas. During the rest of the year I may only sell $100 in merchandise during a typical week. Since most purchases are through their marketplace I receive ten percent. I sell $100 of merchandise; my cut is $10. If taxed through Florida, they will take $6. This is why I say this tax is most unfair to the very smallest online sellers, those too small for a physical store, but still earning a little by using other sites as platforms. I have not been able to find out if the tax will include digital products such as MP3s, books for Kindle, software, apps and games. If so, this will hit the smallest earners and the creative communities the hardest.
1 year ago
1 year ago Link To Comment
"If you want less of something, tax it"

Rush Limbaugh
1 year ago
1 year ago Link To Comment
This will simply create another industry - companies that manage 50 states' of tax requirements for online businesses. Instead of simplifying our nation's taxes, the administration and Congress continue to require more and more professionals to figure it out.
1 year ago
1 year ago Link To Comment
"Business owner and television personality Martha Stewart..."

Don't you mean "business owner and television personality and convicted felon Martha Stewart..." I mean, in the interest of accuracy, right?
1 year ago
1 year ago Link To Comment
It is true internet companies based out of state don't collect state sales taxes, but neither do they use any state resources or get the benefit of state action like police and fire protection. No one adds wear and tear to roads and bridges by shopping online.

And to claim it isn't a "new" tax so it isn't an "increase" is Clintonian parsing, and just as dishonest. If you repealed other exemptions, it is a tax hike in effect and so it is here. PERIOD, end of story.
1 year ago
1 year ago Link To Comment
What about companies that now sell from mail order catalogs. If they don't have an outlet store in your state, you don't owe any sales tax on orders placed with those companies. No one is proposing sales taxes on mail-order companies. How does this type of purchasing differ from purchases made through the internet?
1 year ago
1 year ago Link To Comment
Oh, is she a federalist Republican?
1 year ago
1 year ago Link To Comment
No more taxes. Cut government. Period.
1 year ago
1 year ago Link To Comment
i would not object to an internet sales tax, from a consumer point of view, if there was to be a reduction in tax rate in exchange for the increased base. for some reason the politicians have not mentioned that. gee, i wonder why.

from an ebusiness point of view it will be a effing disaster.
1 year ago
1 year ago Link To Comment
States and communities have, for many decades, relied upon the federal government subsidies of all kinds to balance their books and as you know most are struggling to even balance their books today and some aren't. Reducing state, and local taxes will only come back to bite every federal taxpayer with increased federal subsidies to the state and local communities.
1 year ago
1 year ago Link To Comment
To All PJMedia Readers:
Please don’t waste your time and energy on the likes of Zeke1. He/she has a completely twisted, skewed and perverted perception of reality. He basically sees the world reflected in a funhouse mirror.
1 year ago
1 year ago Link To Comment
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