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Continued: Debate circles online sales tax

  • Article by: JIM SPENCER , Star Tribune
  • Last update: April 26, 2013 - 10:54 PM

“If we were to limit taxes only to the jurisdictions where the taxing decision was made, we wouldn’t have much of an economy,” he noted.

At the same time, Kettl acknowledged the power of the anti-tax forces in the Republican-controlled House.

With Republican governors looking for new revenue streams and big corporations looking to protect their market shares, compelling sales tax collections by online and mail-order merchants would seem like an easy sell for the GOP, Ornstein said. But as House Republican hard-liners have shown with other fiscal measures that easily passed the Senate, anything involving the word tax faces a potential revolt.

“It’s more likely than not to happen,” Ornstein said. “But there is a strong enough visceral anti-tax reaction in the House to make it tricky.

Jim Spencer • 612-673-4503

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