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Online Sales Tax Bill Nearing Verdict

Last updated on Thursday, April 25, 2013

(INDIANAPOLIS) - We’re close to a verdict in the U.S. Senate on the Marketplace Fairness Act which would allow states to collect sales taxes on online purchases.

Butler University Economics Professor Bill Rieber says it's quite unusual that a bill has such support from both Democrats and Republicans.

He says many believe it's simply fair that online retailers should collect sales taxes when brick-and-mortar stores have to do the same. Rieber says the point of sale shouldn't make a difference on whether the tax is paid.

He adds state governments could use the revenue generated from the tax since many states are dealing with budget deficits.

Rieber says it's not clear how much revenue will be collected because it's not known how much of a burden the tax will be, especially on smaller retailers who may go out of business because of the tax.

He adds the reason there is such bipartisan support is because many in Congress believe this is simply enforcing an existing tax rather than adding a new one.

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