More ETax (again)
In our state’s desperate attempt to pilfer from err tax citizens more, our legislators hurry Internet tax plan.
Tennessee is poised to join an elite group of states planning to simplify their tax codes and become part of a governing body that would create a national standard for collecting taxes on Internet and mail-order sales.
Legislation moved swiftly and unexpectedly through various state House and Senate committees yesterday. It is part of a national effort to persuade Congress to allow the states to impose such a tax. The full House and Senate are scheduled to take up the measure today.
State officials estimate Tennessee will lose $300 million this year in uncollected sales tax revenue because of Internet and catalog sales. That figure could balloon to $1 billion by 2007, said Sen. Bill Clabough, R-Maryville, the bill’s sponsor
First, as Bill Hobbs has pointed out numerous times, online sales-tax losses are overstated.
Also, note to Mr. Clabough, there will be no loss because the money hasn’t been earned yet. Stop trying to spin this as a loss, it’s just poor revenue projections. I can’t say my business will make a particular amount and then when it doesn’t say that it’s a loss.
Update: Bill Hobbs also reports that because the Supreme Court has ruled that states may not impose online sales taxes (or any other tax) across state lines unless the seller has a physical presence or “nexus” in the state, the legislators have their work cut out for them. Hobbs is currently bloggered, scroll down to Whackamole Redux.
