Get Ready to Pay Online Sales Tax

Business

0  Updated at 2:46 pm, July 16th, 2012 By: EastIdahoNews.com
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iStockPhoto/Thinkstock(NEW YORK) — A price break for online shoppers may be ending soon, with growing support for sales taxes on purchases made on the Internet. This means many online shoppers would pay at least 5 percent more than they do currently.

Republicans in Congress have joined Democrats to support a bill that would give states authority to force Amazon, eBay, and other online companies to collect sales taxes.

Republican governors are “eager for new revenue to ease budget strains,” and “are dropping their longtime opposition to imposing sales taxes on online purchases,” reports The Wall Street Journal. It’s “a significant political shift” that could lead to a change in federal law.

Brick-and-mortar retailers have long argued that they face an unfair price disadvantage, but the change amounts to a tax hike for many consumers.

Copyright 2012 ABC News Radio