Web Sales-Tax Bill Set to Face Bumps

A bill that effectively would end tax-free online shopping appears to be sailing smoothly toward Senate passage May 6 but will hit choppier waters in the Republican-controlled House, where antitax sentiment is stronger.

Opponents portray the bill as a tax increase and say it would burden small online businesses with complex tax-collection responsibilities. Supporters say the bill would enable states to collect sales taxes that already are owed, not create a new tax or raise tax rates. "It's probably more complicated in the House," said Rep. Steve Womack (R-AR), the chief House supporter of the bill. "There's a lot of political difficulty getting through the fog of it looking like a tax increase." Supporters cast the bill as an issue of fairness, saying brick-and-mortar stores are hurt as consumers increasingly check out merchandise in shops but buy the products online. Many House Republicans are sympathetic to that argument but are reluctant to embrace legislation that constituents could see as a tax increase, wary of a potential grass-roots voter backlash. Many of these legislators are silent on the issue or vague about their intentions. House leaders haven't come out against the measure but aren't jumping to move it along. Speaker John Boehner (R-OH) has taken no public position on the Senate bill, and a spokesman directed questions to the House Judiciary Committee. House Majority Leader Eric Cantor (R-VA) said Congress should address the fairness issue, but he hasn't said how or when.