When you make a purchase online, you probably are not paying state taxes. Whether you know it or not, you have a legal obligation to claim any out-of-state purchases made online on your state tax return.
Except that no one pays these taxes. A bill being voted on today would change that, and make it so that all online purchases are subject to state and local taxes.
The bill, called the Marketplace Fairness Act, has friends and enemies on both sides of the aisle in the Senate.
Takeaway Washington correspondent Todd Zwillich discusses the political process behind the bill.
Curtis Dubay, a Senior Tax Policy Analyst at the Heritage Institute, explains why he opposes the bill.
While anti-tax organizations oppose the leveraging of state and local taxes on internet purchases, many large online vendors, like Amazon, are voicing their support for it. But it’s not just large companies and the administration that support the bill. States and municipalities, even those headed by Republicans, strongly support the bill, too. It could bring in as much as 11 billion dollars for localities across the country-- tax revenue that, not only they are legally entitled to, but that they desperately need.
Mick Cornett, mayor of Oklahoma City, explains how the bill would help his city.