Now that Congress has passed the payroll tax cut bill maybe it will move quickly to close the online sales tax loophole.
Sen. Lamar Alexander on Thursday urged the Senate to do just that. Conservative support for Marketplace Fairness Act is building and now is the time to pass the bill, the Tennessee Republican said.
In a speech on the Senate floor, Alexander listed a number of notable conservatives who support closing the loophole that will cost state and local governments $23 billion this year alone. About the only name he didn’t drop was Grover Norquist.
For a quick look at why states should be more aggressive in going after uncollected sales tax revenue from online and catalog sales, check out the latest edition of Time magazine. In fiscal 2012 alone, states could lose $11.3 billion in online sales taxes, Time reports. Consider that in light of the cumulative $103 billion budget shortfall that states face. Also, Joe Klein has an interesting column on why Grover Norquist’s “antitax fetishism” is bad for the country.