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Senator Lamar Alexander presses for online sales tax

17 views · Published 24 April 2013 · 1:02 · Indexed 22 October 2026

Channel: chattanooga times free press · 2013 · News & Politics

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Next up, Tennessee Senator Lamar Alexander is pressing a bill that would let states require sales tax collection on all online purchases.
Supporters say such a step would help even the score between online retailing and brick-and-mortar stores, which are forced to collect sales tax at the register.
Current law already requires Internet shoppers to self-report their purchases, calculate in-state sales tax and pay up. Virtually no one does, though, and authorities don't enforce the law. That means the nation loses out on about $23 billion dollars in revenue, including about $400 million dollars in Tennessee alone.
The new bill offers an exemption for retailers that don't collect more than $1 million dollars annually. But eBay is pushing for a $10 million dollar exemption that would shield virtually all of its sellers.
The new bill has definitely placed Alexander in an interesting position. Usually one to call for smaller government, he's now spearheading what could amount to a new nationwide sales tax.

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