By Vicki Needham - 07/02/10 07:09 PM EDT
"Leveling the playing field ensures that all Main Street businesses do not continue to face a significant competitive disadvantage by having to collect taxes on their sales, while Internet-only businesses escape that responsibility," said Joe Rinzel, vice president for state government relations of RILA in a release. "This is an issue of fairness for both businesses and consumers."
So far, 23 states have adopted streamlined tax systems to collect taxes and generate revenues, RILA said.
Critics of the change argue closing the loophole on purchases made over the Internet would mean a tax increase for Americans.
Proponents say that because sales tax is due on all purchases, it's just a matter of determining who collects the tax, the seller or purchaser. They also say uncollected taxes have pushed state budgets into the red, forcing states to raise other taxes to compensate, RILA said.
"The streamline sales tax would relieve the burden on the consumer and ensure the fair and equal collection of sales taxes by retail businesses of all types and sizes, whether at a storefront or purely online," said Rinzel.