House to Unveil Sales Tax Plan for Sales Across State Lines
The republican sales tax proposal would introduce a new legal framework for cross-border sales, largely replacing the current system that relies on whether a seller has a physical presence in a state. Currently, a seller only collects taxes on the sale if it has a presence in the destination state.
According to the new sales tax proposal, sales would be taxed according to the tax base of the retailer and a single tax rate chosen by the consumer’s state.
The new approach favored by large retailers like Amazon, who claim they face a competitive disadvantage, and state governments, who claim they are missing out on billions of dollars of sales tax revenue annually.
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