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Democrats, Others Could End Tax-Free e-Commerce

Freedom from taxation on internet purchases could soon be a thing of the past thanks to a new congressional dynamic and other recent changes, reports CNET.

While debated - and rejected - before, the topic of levying a sales tax on e-commerce purchases is showing signs of renewed life. Part of that is because the current Democratic-controlled Congress is seen as more receptive to the idea than their Republican colleagues were when they were in control. Another factor is the clarification by states of certain guidelines and definitions that have heretofore been inconsistent and unclear.

State governors have long argued for an internet commerce tax. They argue state services such as schools have been hurt by the lack of tax revenue from internet purchases. Companies with a "significant" presence in a state do have to collect taxes for that state.

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