Domestic Taxes

A clear majority — 69 percent — of Americans are unwilling to pay more in taxes to save government workers from being laid off, according to the latest Rasmussen Reports poll. 

The survey also found that 63 percent of respondents oppose tax increases to prevent cuts in entitlement programs aimed at low-income Americans. 

The American Petroleum Institute on Tuesday began running ads in opposition of a decision by House Ways and Means Chairman Sandy Levin (D-Mich.) to pay for his green energy tax bill by rescinding several tax breaks benefiting the oil and gas industry. The ads are slated to run in 10 states and depict the tax increases as job killers. 

The 15- and 30-second ads will attempt to show voters that increasing taxes on an industry that supports 9.2 million jobs and represents 7.5 percent of the country’s GDP will have a devastating effect on the economic rebound. 

The National Association of Real Estate Investment Trusts on Tuesday urged lawmakers to pass legislation requiring Internet shopping sites to collect sales taxes. 

Internet and other sellers that do not have a physical presence in a state are not required to collect the sales and use taxes at the point of sale, while most brick-and-mortar stores are required to do so. The group suggests that if Congress treated all shops the same there would be less of a deficit issue at the state level. 

“[Billions] of dollars in sales taxes owed [to] state and local governments for remote sales, estimated at over $10 billion a year annually by 2012, have gone uncollected,” the group stated, adding, “We believe all commercial transactions should be subject to the same tax treatment.”

If lawmakers don't act, 27 million taxpayers will see an average tax increase of $3,900 from the alternative minimum tax. 

While supporters have argued it would level the playing field among businesses, eBay said the bill would stunt economic growth.

Some liberal Democrats think it would be hypocritical for the party not to offset the cost of the tax extensions.

A newly introduced bill could help state and local governments collect billions in sales taxes, providing a boost to widespread budget shortfalls. 

Rep. William Delahunt (D-Mass.) has proposed a measure that would provide for a simplified sales-tax collection system setting up a way for online retailers to collect sales taxes on purchases. 

The change could raise as much as $23 billion in new taxes, according to the National Conference of State Legislatures, which supports the legislation. 

Current tax rules don't require Internet retailers from collecting state taxes if they don't have a "physical presence" in a state.

The loophole puts the burden on the consumer to report the sales tax owed from an online transaction on their state income tax return, a requirement largely overlooked, according to the Retail Industry Leaders Association.

Sen. Mary Landrieu's bill is co-sponsored by members whose states have been affected and defers the tax from BP reimbursements. 

Speaker Nancy Pelosi (D-Calif.) on Thursday said the war supplemental package that will be debated in her chamber and costs approximately $30 billion could be paid for by repealing tax cuts for the wealthy enacted under President George W. Bush. 

"[The] Republicans have said they want to pay for the war by limiting — raising the age of retirement for seniors," she told reporters. "If they want to pay for the war, I think a good place to pay for it would be by repealing the Bush tax cuts for the wealthiest people in our country." 

Rep. Chris Van Hollen (D-Md.), the Assistant to Speaker Nancy Pelosi (D-Calif.), on Wednesday said dire budget predictions by the Congressional Budget Office will not alter Democratic plans to extend middle-class tax cuts enacted under President George W. Bush and not pay for their cost. 

"Our plan is to continue with that portion of the tax cuts that provide relief to people under $250,000," he said, adding that "not at this time" was there a plan to offset the cost of extending these provisions. 

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