Durbin sees defense bill as vehicle for online sales tax

Senate Majority Whip Dick Durbin (D-Ill.) is pushing to attach his online sales tax measure to the defense authorization bill the chamber is currently debating, Durbin’s office said Thursday.

The Senate has been voting on amendments to the defense authorization bill for much of Thursday. But with votes expected to go deep into Thursday night, it remains to be seen whether the online sales tax measure will get a vote.

Durbin has been working with Sens. Mike Enzi (R-Wyo.) and Lamar Alexander (R-Tenn.) on an online sales tax bill for much of this Congress. The three senators tried to attach the measure to small business legislation this summer, but it never received a vote. 

Retail groups and Amazon are among those pushing for the online sales tax bill, which would allow states to charge sales taxes on retailers from outside their borders – something they’re currently not allowed to do because of a 1992 Supreme Court decision. 

Those groups argue that the legislation would allow brick-and-mortar stores to play on an even playing field with online retailers, at least when it comes to taxes.

But some key conservatives and other online retailers, like eBay, oppose the measure – saying, among other things, that it would be a huge burden for small Internet outfits to have to collect sales taxes from across the country.

“By all indications, retailers are coming off of their best Black Friday and Cyber Monday ever,” said Phil Bond, the executive director of the WE R HERE Coalition, which was recently formed to oppose congressional proposals.

“So it is puzzling that some in Congress are still insistent on helping big box retailers crush their small business competition by saddling them with new tax collection burdens.

On the House side, Reps. Steve Womack (R-Ark.), Jackie Speier (D-Calif.), John Conyers (D-Mich.) and Peter Welch (D-Vt.) are also working to pass an online sales tax measure.

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