The Death of the Tax-Free Internet?

Last week, by virtue of a 63-30 procedural vote, the Senate moved forward with a bill called the Marketplace Fairness Act, with a final Senate vote set for May 6, according to The Wall Street Journal.

The bill, if it were to become law, would enable states to force online sellers nationally to collect sales tax with respect to their residents’ purchases.

In the past, online sellers were not in favor of the imposition of sales taxes on Internet transactions — indeed, these sellers had a competitive advantage over brick-and-mortar sellers, because purchases from online sellers were cheaper for buyers due to the lack of imposed taxes.

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