Durbin wants to collect taxes on Internet sales

August 11, 2011 5:18:22 AM PDT
U.S. Senator Dick Durbin wants big companies to collect taxes on internet sales and send the revenue to governments that are entitled to the money.

The Illinois Democrat made the announcement in a South Side bookstore. Durbin claimed by conservative estimates, Illinois loses $153 million yearly in uncollected internet sales taxes. He said it's hard for any state to crack down, because internet sellers threaten not to do business in that state.

"Well, there's a better answer. Do this on a national or federal basis. Establish a standard across the nation for the collection of internet sales tax by the sellers, so that it is then remitted to the state and local governments," Durbin said.

Durbin also stressed that internet merchants can sell items at lower prices than bookstores and other traditional businesses, which must add sales tax. He said his legislation would help stores compete.

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