Senate Endorses Internet Sales Taxes

Minor compliance hassle, given thousands of jurisdictions

The U.S. Senate voted overwhelmingly today to endorse levying Internet sales taxes on American shoppers, despite warnings from a handful of senators that the proposal is antibusiness, harmful to taxpayers, and will be a "bureaucratic nightmare."

By a vote of 75 to 24, senators adopted an amendment to a Democratic budget resolution that, by allowing states to "collect taxes on remote sales," is intended to eventually usher in the first national Internet sales tax.

The vote follows a week of fierce lobbying from the National Retail Federation and the Retail Industry Leaders Association, which represent companies including Walmart, Target, AutoZone, Best Buy, Home Depot, OfficeMax, Macy's, and the Container Store. They argue that online retailers, which in some cases do not collect sales taxes at checkout, enjoy an unfair competitive advantage over big box stores that do.