Why Are Democrats Trying To Take Away Internet Tax Free Shopping?

Question

http://tech.msn.com/news/articlecnet.aspx?cp-documentid=4934799>1=10036

The era of tax-free e-mail, Internet shopping and broadband connections could end this fall, if recent proposals in the U.S. Congress prove successful.

State and local governments resumed a push to lobby Congress for far-reaching changes on two different fronts: gaining the ability to impose sales taxes on Net shopping, and being able to levy new monthly taxes on DSL and other connections. One senator is even predicting taxes on e-mail.

At the moment, states and municipalities are frequently barred by federal law from collecting both access and sales taxes. But they're hoping that their new lobbying effort, coordinated by groups including the National Governors Association, will pay off by permitting them to collect billions of dollars in new revenue by next year.

"But with Democrats now in control of both chambers of Congress, the political dynamic appears to have shifted in favor of the pro-tax advocates and their allies on Capitol Hill. The NetChoice coalition, which counts as members eBay, Yahoo and the Electronic Retailing Association and opposes the sales tax plan, fears that the partisan shift will spell trouble."

cwstuff: just because the article attributes it to a republican doesn't mean it would have EVER passed in a republican controlled congress.

Answer 1

The Democrats never met a tax they didn't like. They're especially irked when we benefit from something they haven't been able to tax, like the Internet. I hope they push this issue, because it's sure to throw them right back into minority status! In the immortal words of Dirty Harry, "Make my day!"

Answer 2

10 years ago you bought only in the store and paid sales tax. The tax went to the govt to help pay for things etc..... Now you buy things on the net and you don't pay sales tax...now the state is losing money from all those sales in which they used to make money. Simple economics would say either you raise sales tax on counter purchases or you inact a sales tax for purchases on the net. That money has to be replaced... you are talking about millions if not billions of dollars lost from net purchases.

Answer 3

They want to take away tax-free shopping because they need more tax money to pay for their socialist programs to subsidize the lifestyles of those who cannot (not their fault, glad to help them) or will not work and pay taxes like responsible citizens. Remember, under Clinton there was talk of a "one time" tax on all the 401k accounts. Clearly they need another source of revenue, and an internet sales tax is probably inevitable.

Answer 4

It's a very easy way to take more money away from us. After all, what work do they have to do to earn it? They don't. All they need to do to get all the money they need (read: want) is issue a decree. (BTW, not just Democrats: read the first Iraq bill that Bush vetoed a few weeks ago. Billions of dollars in pork, and a lot of it was for Republicans...)

Answer 5

Republicans are doing the same thing. The National Assn of Counties has been doing this for years, and MANY of these are Republican run (like my county). They're dling it because politicians can't stand the idea that there is revenue opportunity somewhere that they don;t have their greedy little mitts on.

Answer 6

Excuse me, but the idea is attributed to a Republican - as stated right within the article you referenced:

"If that doesn't happen, other taxes may zoom upward instead, warned Sen. Michael Enzi, a Wyoming Republican, at a Senate hearing on Wednesday. "Are we implicitly blessing a situation where states are forced to raise other taxes, such as income or property taxes, to offset the growing loss of sales tax revenue?" Enzi said. "I want to avoid that."

Answer 7

Liberals don't seem to understand that more taxes do not equate into more income. If you tax more people curb that activity. Example, If they start charging for emails, I stop sending emails.

Answer 8

Democrats LOVE taxes. Gives them more to spend!

Helps them establish the "society" they want - where we are all dependent on the government (see Hillary's latest left-wing-nut speech!) rather than on ourselves!

Answer 9

Libs. need tax,es for there many social programs, thats there power

Answer 10

Money is POWER. If they take you money, they take your POWER.
That is why they all want as much of your money as they can get. It doesn't matter how they get it.
Any tax will work.
I'm surprised they don't send around hatchet-men to extort it directly!