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Senate Passes Internet Sales Tax Bill Amid Opposition from Conservatives

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Photo Credit: Scott SadyThe US Senate on Monday passed a bill aimed at ending tax-free shopping on the internet but the move looks set to face fierce opposition before it becomes law.

The Marketplace Fairness Act, which has cross-party supporter and the backing of powerful retailers, would give states the power to require retailers with sales over $1m to collect state and local sales taxes for online purchases.

The bill has the support of president Barack Obama the majority of senators including Republican John McCain but Marco Rubio, seen a potential Republican presidential hopeful, and Rand Paul both voted against the bill.

The bill passed the Senate by 70 votes to 24 but faces a second test in the House of Representatives where internet retailers and conservatives are already lobbying against the tax. House leaders have yet to schedule hearings or votes on their version of the measure.

The legislation would overturn a 1992 supreme court ruling that said a state could not force a retailer to collect sales tax unless the retailer had a physical presence in the state.

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eCurrency Experiment Gone Bad: Bitcoin Crashes

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Photo Credit: Agence France PresseMany saw it coming, but that didn’t stop the Bitcoin bubble from bursting: after rising to dizzying heights, the digital currency suffered its first true crash this week.

The price of the virtual “geek” currency had soared through the stratosphere in recent weeks, trading for a high of $266 on Wednesday — only to come hurtling back to Earth in just three days.

By Friday, a single Bitcoin was worth just $54, according to the Mt. Gox platform, which manages 80 percent of the Bitcoin transactions and had to briefly shut down trading Thursday.

“There was a LOT of short-term speculation happening” from people who wanted to earn a buck from the soaring prices and cash out before the fall, Bitcoin Foundation chief scientist Gavin Andresen told AFP.

“Wild price swings are not good for Bitcoin.”

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Senate to Open Debate on Charging National Sales tax on Online Purchases

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Photo Credit: Getty

Fresh off last week’s bitter battle over gun control legislation, the U.S. Senate is slated to delve into another divisive issue: legislation to tax Internet sales.

Senate Majority Leader Harry Reid, D-Nev., is expected to begin debate on the Marketplace Fairness Act as early as Monday with a possible vote on the measure by the end of the week.

The bill would allow states to require online retailers of a certain size to collect sales tax, even when the seller is from a different state. States now lose about $11 billion in tax revenue because online sales are not taxed, according to a 2011 report by Fitch Ratings.

Under current law, online retailers must collect taxes only in states where they have a physical presence. The legislation would compel those retailers to collect in all states, with an exception for retailers with annual sales of less than $1 million.

Support for the legislation crosses party lines but so does the opposition in the Senate.

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After Aurora, Obama now considering banning ammo sales online

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Photo credit: kcdsTM

White House spokesman Josh Earnest said Monday that President Obama will “evaluate” a new bill that would ban online ammunition sales in the wake of the shooting massacre in Aurora, Colo. That left 12 dead and dozens more injured.

During the daily press briefing, Mr. Earnest was asked whether Mr. Obama supports the measure, which aims to end sales of unlimited amounts of ammunition on the Internet and other mail orders. The bill also would force ammunition dealers to report large sales of bullets and other munitions to law enforcement authorities

At first Mr. Earnest said he didn’t know if Mr. Obama was aware of a bill sponsored by Sen. Frank Lautenberg, Democrat from New Jersey, and Rep. Carolyn McCarthy, a Democrat from New York. He later amended this remarks to say the White House would evaluate the measure.

“The president’s view that have been relayed quite frequently over the last few days, you know, is that he believes in the Second Amendment of the Constitution, in the right to bear arms but he also believes that we should take robust steps within existing law to ensure that guns don’t fall in the hands of criminals or others [who] shouldn’t have them,” he said, referring to gun-control comments Mr. Obama made during at speech at the National Urban League.

The reporter followed up by asking whether the president’s push for enforcing existing law would prevent him from supporting the bill banning online munition sales.

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