WASHINGTON (Arkansas News Bureau) -- Anti-tax advocates stood outside the U.S. Capitol on Tuesday and slammed legislation sponsored by Rep. Steve Womack, R-Rogers, to require out-of-state merchants to collect sales tax on Internet purchases.
"This is a bad bill," said Sen. Ted Cruz, R-Texas. "What you are seeing is Democrats and Republicans, arm in arm with giant corporations, saying let's raise $23 billion on consumers all over the country. That's crazy."
The "Marketplace Fairness Act" would require merchants with annual online sales of more than $1 million to collect sales tax receipts even if the retailers have no physical footprint in the state.
In Arkansas and other states with a sales tax, individuals are required to pay "sales and use" tax on out-of-state purchases but a small fraction actually comply.
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