GOP senators: Don't include online sales tax bill in omnibus

GOP senators: Don't include online sales tax bill in omnibus
© Greg Nash

GOP Sens. Steve DainesSteven (Steve) David DainesTrump throws support behind 'no brainer' measure to ban burning of American flag Trump throws support behind 'no brainer' measure to ban burning of American flag House panel advances bill to create cybersecurity standards for government IT devices MORE (Mont.) and Ted CruzRafael (Ted) Edward CruzGOP senator introduces bill to hold online platforms liable for political bias GOP lawmaker delays House for second week GOP lawmaker delays House for second week MORE (Texas) on Tuesday urged their fellow lawmakers not to add online sales tax legislation to an omnibus spending bill, arguing that doing so would hurt small businesses.

"Omnibus can mean ominous for taxpayers," Daines said at a press conference. 

Some lawmakers on both sides of the aisle are pushing for the omnibus to include legislation to allow states to require out-of-state online retailers to collect their sales taxes. Rep. Kristi NoemKristi Lynn NoemTransportation Department seeks to crack down on pipeline protests: report Trump touts 'BIG FIREWORKS' returning to Mt. Rushmore for July 4 American Indian tribe bans GOP governor from reservation over opposition to Keystone protestors MORE (R-S.D.) has been making an aggressive push on her bill on the subject in the House.

Supporters of the legislation argue that it will allow states to collect money already owed to them and put online retailers on the same playing field as brick-and-mortar stores. They also argue that there's urgency for Congress to act now, before the Supreme Court acts on a case on the topic this year.

But Cruz, Daines and other conservatives argue that legislation like Noem's would be detrimental to small online retailers. 

"The internet sales tax would take small mom-and-pop internet sellers all across the country and subject them to the taxing authority and to the enforcement authority of over 9,600 jurisdictions all across the country," Cruz said.

The senators, as well as representatives from outside conservative groups, argued that online sales tax legislation is opposed by the public and should go through the regular legislative process. They also said that Congress shouldn't act before the Supreme Court rules.

"Congress could legislate in a way that's not actually responsive to what the court might do," said Andrew Moylan, executive vice president of the National Taxpayers Union Foundation.

In addition to conservatives, Democrats in states without sales taxes also oppose inclusion of online sales tax legislation in the omnibus.

"If passed, this would create an underground, nationwide, privatized tax-collecting bureaucracy," Sen. Ron WydenRonald (Ron) Lee WydenOn The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project On The Money: Trade chief defends Trump tariffs before skeptical Congress | Kudlow denies plan to demote Fed chief | Waters asks Facebook to halt cryptocurrency project Critics say Interior's top lawyer came 'close to perjury' during Hill testimony MORE (D-Ore.) said in a statement last week.