Ind. lawmaker: Online tax could replace estate tax
Taxes Tuesday, January 3rd, 2012
From: The Washington Examiner
A top Indiana lawmaker is floating the idea of using an online sales tax to help replace revenue that would be lost if a proposal to eliminate the state’s inheritance tax becomes law.
State Sen. Luke Kenley, a Noblesville Republican who chairs Senate Appropriations Committee, wants Congress to require all online retailers to collect state sales taxes. He said it would be an ideal replacement for the inheritance, or estate tax.
“It’s almost a one-for-one replacement and it’s a perfect replacement for the estate tax,” Kenley told the Times of Munster (http://bit.ly/vgYeMv ).
Indiana would lose about $165 million a year starting in 2020 if lawmakers eliminate the state’s inheritance tax, according to estimates.
Currently only online retailers with a physical location in a state are required to collect sales tax. Individuals are supposed to pay a 7 percent use tax for online purchases where sales tax wasn’t collected, but the Indiana Department of Revenue said that few people do.
In November, Kenley told a Congressional committee that pending legislation sponsored by U.S. Sen. Dick Durbin, D-Ill., would ensure equality between online and brick-and-mortar retailers by requiring both to collect sales tax from their customers.
To read more, visit: http://washingtonexaminer.com/news/2012/01/ind-lawmaker-online-tax-could-replace-estate-tax/2056371
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