Michigan Legislators Vote to Tax Internet Sales

The Michigan House of Representatives voted yesterday to allow Michigan to join other states in creating a uniform, nationwide system of collecting and enforcing sales tax on online sales. The bill passed 57-50, and now heads for the Senate.

Conservative Republicans voted against the bill and spoke out after the vote. "The people don't want this policy. Government wants this policy," explained Rep. Gary Woronchak (R-Dearborn).

State-paid teachers unions supported the bill, arguing that schools would lose much-needed revenue if Internet sales are not taxed.

Meanwhile, the National Taxpayers Union (NTU), the nation's largest grassroots taxpayer organization, accused the Michigan state house of pushing through a "stealth tax hike," a "sneak attack" on Michigan taxpayers. "While the U. S. Congress, the President, and most of the states are focused on tax cuts and other measures to help the economy recover, Michigan lawmakers appear determined to bash taxpayers and the economy with this huge tax hike," said NTU President John Berthoud.

NTU condemns the "Streamlined Sales Tax Project," the program currently being promulgated by the National Governors Association, to allow a national sales tax program on Internet sales, overriding the current nexus standard that permits taxation on sales only where the buyer and seller have a substantial presence in the same state.

You may like these other stories...

How are you planning? What tools do you use (or fail to use) for forecasting? PlanGuru is a business budgeting, forecasting, and performance review software company based in White Plains, N.Y. AccountingWEB recently spoke...
Event Date: October 30, 2014, 2 pm ETMany Excel users have a love-hate relationship with workbook links. For the uninitiated, workbook links allow you to connect one Microsoft Excel spreadsheet to other spreadsheets, Word...
Event Date: September 9, 2014, 2:00 pm ETIn this session we'll discuss the types of technologies and their uses in a small accounting firm office. Included will be:The networked office: connecting everything together for...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.