Internet sales tax
Plans to allow states such as Tennessee tax Internet sales are still a long way off – good news for online shoppers but bad news for a state losing billions in sales taxes.
They’re not losing money. It’s money that was never earned. Some stats:
In Tennessee alone, nearly $500 million is not collected each year in sales taxes on Internet shopping. That’s almost enough to cover a shortfall in the state’s expanded Medicaid program, which the governor has proposed cutting by 323,000 people.
Across the country, more than $21 billion in sales tax is not being collected, according to a University of Tennessee study.
When the Supreme Court decided 13 years ago to exempt mail-order businesses from the tangled web of various state and local tax codes, no one envisioned Internet commerce exceeding $1 trillion.
I see mentioning TennCare and taxes in the same sentence has started early this year.