Earlier this week, U.S. News and World Report launched an article that outlines the debate over whether retailers should be required to collect and remit sales taxes for items they sell to out-of-state buyers.  The article explains that legislation has been introduced in Congress to change the way businesses handle out-of-state sales by requiring them to collect sales taxes even if they don’t have physical presence in their buyer’s state.

Last month, a Chicago-based think tank, Heartland Institute, published a memo outlining the “myths” that are circulating regarding Internet sales taxes.  One of the myths Heartland debunks is the “ease of compliance” for small businesses.  In their memo, Heartland states that “the cost of compliance would be unduly burdensome for small businesses despite advances in software”.  eBay shares Heartland’s concerns for small Internet-enabled retailers and has called on Congress to protect small online retailers from onerous new sales tax r

As Congress continues to debate legislation to expand Internet Sales Tax collection, a number of think tanks involved in tax policy have raised questions with proposals to require out-of-state retailers to collect sales taxes.  David Addington, a senior policy official at The Heritage Foundation, provides a thorough review of the issue and argues that Congress should reject the current legislation in order to promote a strong national economy and encourage fiscal responsibility among the states.