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Most People Don’t Like the Internet Sales Tax Bill

If the Internet sales tax bill becomes law, it certainly won’t be a testament to what most Americans want.  Rather, it will simply demonstrate how powerful the lobbyists for big businesses are in Washington.

A recent poll indicates 61 percent of people disagree with the Internet sales tax bill:

In what was meant to level the playing field, the Internet sales tax has faced opposition from those arguing that a new tax would disadvantage small businesses by forcing them to collect sales taxes from multiple states.

Joining the opposition are consumers, a new study suggests, with 61% of U.S. voters saying they disagree with the bill, with 40% of those disagreeing because they are “sick of tax hikes.”

The study, sponsored by Endicia and published on Mashable, also reveals that 44% of U.S. voters responded they would make less online purchases if the Internet sales tax was in place.

Similarly, Heritage explained:

The bill would significantly increase the cost of buying goods on the Internet for consumers. It would allow politicians in Illinois to tax someone buying books from an online seller in New Hampshire, or make consumers in Ohio pay more to download songs from iTunes.

While many large corporations like Wal-Mart support increasing the taxes consumers pay for online products, companies like eBay have sent emails opposing the tax hike to people who sell goods through the online auction site.

“The legislation treats you and big multibillion-dollar online retailers, like Amazon, exactly the same,” John Donahoe, eBay’s chief executive, said in one email to eBay sellers.

This bill is about big businesses driving out competition from small online businesses.  The revenue states would receive will not be that significant.  But the negative impact on the economy, small online businesses, and consumers will be much more profound.  It’s not a conservative bill; it’s a special interests bill.

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