Senators Bypass Regular Order to Push IST
Not suprisingly some Democratic Senators lead by Dick Durbin are angling to bypass regular order and bring the highly controversial internet sales tax to the floor and force a vote. What is suprising, is that a number of Republican Senators are on board with this tactic as well.
Were this legislation allowed to have a proper hearing, we’d have the chance to ask questions about audits, costs, and problems that this bill would impose on all of the businesses in states all over the country. This legislation gives new taxing powers to states that meet undefined “minimum simplification requirements.”
Advocates claim this legislation requires states to provide software to handle inevitable and costly tax complexities, but that raises new questions such as: Can each state provide its own unique software? Who will pay all the costs that a business would incur to integrate potentially 46 new pieces of software into their ordering and fulfillment systems?
These are just a few of the many problems with this proposed legislation.
Other questions issues include whether states would be able to provide the necessary software to handle tax complexities or who will pay all the costs that a business would incur to integrate potentially 46 new pieces of software into their ordering fulfillment system?
There are major problems with the regulatory framework when it comes to overseeing these newly empowered state tax collectors. Over zealous state depatments of revenue will reach into other states to tax and audit buisnesses who don't have a voice. Tax colletors from California could potentially impose tax liens on businesses in Alabama.
This legislation has serious shortcomings that need to be openly discussed through regular order, rather than bringing the bill directly to the floor.