A new bill has been introduced in the House of Representatives to expand sales tax collection on the internet, leading business and anti-tax advocates to protest the measure vigorously.
The proposal, which would result in as much as $23 billion in new taxes, is designed to help state and local governments close budget gaps. However, Tod Cohen, vice president for government relations and deputy general counsel at the online retailer eBay, has said that the measure would increase costs on small business operating online, eliminate jobs and further harm the already weak economy.
"At a time when unemployment rates are high and small businesses across the country are closing shop, we are confident that Congress will protect small internet retailers and the consumers they serve from another internet tax scheme," he stated.
Meanwhile, Americans for Tax Reform have complained that the recently passed healthcare reform bill is showing its first impact in terms of higher taxes as a new 10 percent Federal excise tax on indoor tanning went into effect on July 1.
The organization also stressed that the reform contains some 21 tax hikes, most of them violating President Obama’s electoral campaign pledge not to raise taxes on middle-class families.