Republican Reps battle within party over online sales tax bill

Members of the House Judiciary Committee sparred over the implications of a bill that aims to take away states' ability to collect online sales taxes. Republican Reps clashed within their own party and with Democrats in a hearing over whether or not the “No Regulation Without Representation” act (HR 2887) would help local economies or violate principles of state sovereignty.

“For most of American history, it was axiomatic that states cannot regulate beyond their borders,” said Judiciary Chairman Bob Goodlatte (R-VA). “HR 2887 would provide a clear congressional response that would, at the same time, protect states’ rights.” Chairman Goodlatte contended that one state imposing an online sales tax could violate another’s right to govern. A bookseller in Idaho selling on Amazon to a buyer in Texas, for example, could be hypothetically affected by an online sales tax in Texas. One Republican legislator from South Dakota, state Sen Deb Peters (R-SD), testifying before the committee, said the opposite effect would be achieved. "With respect to interstate sales tax collection, the No Regulation Without Representation Act unjustifiably pre-empts state authority,” state Sen Peters said, arguing that the legislation Goodlatte is supporting would unfairly bar states from regulating commerce within their own borders.