Sen DeMint accuses Amazon of lobbying for online tax to cripple competitors

Sen Jim DeMint (R-SC) blasted a bill that would allow states to tax online purchases and accused Amazon of lobbying for the bill to hurt its online competitors.

Under current law, states can only collect sales taxes from retailers that have a physical presence in their state. People who order items online from another state are supposed to declare the purchase on their tax forms, but few do. Amazon reportedly has plans to dramatically expand its number of physical distribution centers to allow for same-delivery. The physical centers would make Amazon subject to taxes in many states under current law anyway. "Now that you're going to have to pay taxes in all of these states where you have a physical presence, you want to come back and tax these other companies that don't," Sen DeMint said at hearing of the Senate Commerce Committee. Paul Misener, Amazon's vice president for global public policy, said the company supports the bill to establish a single national framework for collecting sales taxes, instead of a patchwork of state laws. He argued that Amazon has long supported a national solution for taxing online purchases.