Internet sales tax proposal dies in House Finance subcommittee
By JR Hoeft | Thursday, February 25th, 2010 | PolicyThe Virginia House of Delegates subcommittee on Finance voted down SB660 – a bill which required internet retailers to collect 5% Virginia sales tax for certain online purchases.
Subcommittee Chair, Delegate Tim Hugo (VA-40) stated that had the bill passed, up to 5,200 small internet retailers in Virginia could have been put out of business.
“Damage to small internet-based businesses would result in job loss and curtail the growth of the burgeoning internet industry in the Commonwealth,” he said.
Kudos to Del. Hugo and the rest of the subcommittee for keeping the internet free to grow and develop jobs and not succumbing to the very appropriate Ronald Reagan adage, “[G]overnment’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
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Conservative to the core; liberal with his opinion! J.R. has been involved in politics for over a decade and has worked on several campaigns in Hampton Roads. He has served on the Executive Committee of the Republican Party of Chesapeake and the Central Committee of the Republican Party of Virginia. He is also the director of “Blogs United” in Virginia. E-mail J.R.. Follow J.R. on Twitter.
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6 Responses to "Internet sales tax proposal dies in House Finance subcommittee"
I thought Republicans didn’t believe in the government intervening in the marketplace to choose winners and losers, which the sales tax exemption for Internet sales does.
Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax.
Changing the status of the internet from not being taxed to being taxed, is picking winners in itself.
Currently, the law says you have to remit the tax (otherwise you’re guilty of tax evasion – granted the law is hardly ever enforced) to the Va Department of Taxation, so this wouldn’t be a new tax
5200 small internet retailers in VA? is he referring to ones that operate off of Ebay? once again something that couldn’ve been done right now to help with the budget and to contribute to transportation that’s been shot down.
“Currently, the law says you have to remit the tax (otherwise you’re guilty of tax evasion – granted the law is hardly ever enforced) to the Va Department of Taxation, so this wouldn’t be a new tax
” -Michael Ragsdale
Michael, how does that square with the fact that they feel the need to pass a new law? Why the opposition if it is current law? How does that square with the satement by t1ewis?
t1ewis, hurting those operations that still have to deal with warehouse and shipping costs is not the answer. Harming industry long term and giving other states the advantage won’t help. Secondly, it wouldn’t even put a dent in budget.
They have to cut spending, there is no way around it. And that’s the rub. Some hooked on spending just assume we tax the man behind the tree. Hurt anybody’s budget by mine, says the spender of taxes.
I agree with Hugo because the internet business is just starting it`s development and it`s fast growth will be profitable for everybody
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