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In a lame attempt to get shoppers from neighboring (sales
tax) states back into Delaware, Sen. Carper is pushing legislation
that would force Internet retailers to begin charging sales
tax to all customers who live in states with a sales tax.
Because Delaware doesn't have a sales tax, residents, visitors,
and Internet Shoppers would not be charged sales tax for purchases
from businesses located in that state.
The Senator is worried that a tax-free Internet could pose
a future problem for the state's businesses.
Next year, Congress is expected to take up legislation sponsored
by sponsored by Sen. Byron Dorgan, D-N.D., giving states the
authority to collect sales tax from Internet retailers the
same way they do from shops located within their borders.
The bill would exempt the five states with no sales tax--Delaware,
Alaska, Montana, Oregon, and New Hampshire.
Opponents argue that collecting sales tax in 45 states with
different tax codes would be an administrative nightmare,
and that forcing online shoppers to pay both sales tax and
shipping charges will hurt Internet commerce.
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