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To: phil_will1; ancient_geezer
As I understand, in the Streamlined Sales and Use Tax Act H. R. 3184, the states are seeking federal authority to force retailers (in other states) to collect taxes on sales made to inhabitants of their state (i.e. they want retailers to collect sales tax on sales made via the Internet).

Both the house and senate versions of the Streamlined Sales bill have larger cosponsor list than the Fair Tax bills. I make the assumption that this is because they have a larger (state sponsored?) organization pushing their bill.

Since both groups seek a federal sales tax, my overall question is "Is there an opportunity to combine forces?"

But my immediate question is "When a state government does 'harmonize' its tax system with the Fair Tax, does the state then have the opportunity to collect a state tax along with the federal tax on sales and services that cross state lines?"

10 posted on 04/14/2004 10:06:24 AM PDT by show me state
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To: show me state

does the state then have the opportunity to collect a state tax along with the federal tax on sales and services that cross state lines?"

No more than they may already have authority to do. Most states now require their residents to pay use taxes on things they purchase out of state now, its just is not very feasible to enforce such provisions.

The FairTax legislation does not address the issue of state taxes on phone/mail/net ordered sales per-se.

If enactment of the "Streamlined Sales and Use Tax Act H. R. 3184" occurs, that becomes a more feasible scenario.

12 posted on 04/14/2004 2:17:04 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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