The Senate passed an Internet sales tax bill, the Marketplace Fairness Act, last month on a bipartisan basis, but it has yet to pass the House. This legislation would allow states to require online sellers to collect sales taxes, which would go to state and local governments. The legislation would apply to online retailers earning at least $1 million in sales outside of states where they have brick-and-mortar locations. Currently, online retailers do not have to collect sales taxes on Internet purchases unless they have a physical presence in the state.
This legislation faces more opposition in the House than it did in the Senate, with numerous members, including House Speaker John Boehner, criticizing it. The White House has announced that the president supports the legislation.
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