US Treasury Secretary Steve Mnuchin told the Senate Banking Committee this week that there are parts of a national Internet sales tax that Trump "likes." He added, according to the Washington Times, that the president wants to see a formal proposal and then work with legislators on a bill.
"I think the president basically supports the idea of a type of sales tax in all areas, and we look forward to working with you and others on the matter," Mnuchin said, according to The Washington Times.
A national sales tax on the internet has been a hot topic for years, some say it's compelling and others say it's an unfair concept. Proponents of the tax claim that current legislation offers an advantage to retailers who sell their products mainly online, as they only have to pay sales taxes in countries where they have a greater physical presence.
"Almost everyone, with the exception of cost-conscious consumers and pure online gambling merchants, sees the benefits of online sales tax as long as it's easy to manage, calculate and calculate," says Greg. Girard, analyst. IDC.
Lawmakers from both sides have come up with the idea of online sales tax to improve "fairness" between online merchants and brick-and-mortar retailers. So far, however, some states have successfully enforced online sales tax, but no national bill has yet been passed.
"A single national online sales tax system, regardless of the connection, would simplify administration and contribute significantly to a level playing field," Girard said.
A link indicates whether or not the trader has a physical presence, stores, or distribution centers in the state. Girard pointed out that Amazon sales are already taxed in many, if not most, US states, as there is a national network of distribution centers, Whole Foods Market stores, and ticket offices.
According to the Washington Times, citing an estimate by the Office of Government Accountability, taxes could be significant: state and local governments could raise between $ 8 and $ 13 billion each year.
Currently, you can save money on many online purchases by paying no sales taxes. If they are forced to pay sales tax online, traders are likely to pass on these costs to consumers. The cost of buying products online could then increase significantly.
Assuming that a national online sales tax becomes a reality, what would that mean for online buyers? Will they pay more in the end?
"These are not easy questions," Girard said. "Everything depends on what the market supports, how the tax is built, how much the tax rate is and what it costs the buyer's decision.
Nevertheless, we do not know if and when this law will be adopted. Lawmakers still need to draft a bill, fight it in Congress, nd hope for the President's approval. It would be easy to see this.
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