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Rep. Steve Womack, (R-Ark.), on a new bill that would allow states to tax sales made over the Internet.
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Shopping shop until you drop.
Well not so fast your tax free shopping deals from Internet retailers like Amazon Overstock.Com.
In zappos may be nearing an and today the House Judiciary Committee held a key hearing.
On a bill to collect sales tax from online retailers -- shopping heresy here in exclusive interview two different.
-- straight from the meeting is congressman Steve Womack congressman thank you for joining me today.
My pleasure Melissa great to be with you so I pay sales tax the retailer -- physical presence in my state will the bill change that.
Well it would if the states the state where you live work to choose to change that and that's the great thing about my bill.
It doesn't do anything except give the states the authority to compel an online remote seller.
Like some of the ones you just mentioned -- to collect and remit the taxes just as if that sale had taken place.
In -- on main street where you live -- so we have a a terrible dilemma in the retail world right now with regard to fairness.
The traditional we call them brick and mortar stores that you're familiar with downtown.
And at the mall.
They have to collect and remit because they are physically located in that state but the online remote seller.
Where a lot of people go to five.
Doesn't have to do that could finally pay I saw there.
Wondering why you wanna protect Wal-Mart.
Over the customer at home.
Hello this is this is not about Wal-Mart this is about fairness.
For the traditional brick and mortar institution.
Because they are required to do something that their online counterparts are not are required to do that onus is on the consumer.
And we are -- we are creating.
Traditionally onus would be on the consumer has the consumers the one that's benefiting from -- you really only -- -- things that you want to discourage were in an economy -- -- consumers hurting why would you want to tax them more.
We -- Melissa that's part of the argument here you mentioned the onus is not on the consumer.
What you don't -- may not understand a lot of my constituents don't even understand it when they buy something online from an out of state seller that doesn't have a presence in Arkansas.
There is a use tax it is due and payable to lawfully due and payable in our state.
And the consumer has to go to the Internet download the form record the purchase in remit the use tax.
-- that's happening of those trends I am going to know what I'm doing that.
Well it's a -- fully due and payable tax and so I think it's about fairness and again I.
I want -- -- it right back to what I said in the beginning we have -- playing field if you will in the retail community that is terribly out of balance.
And -- -- in the reason I'm Carrie in this legislation is because I am I don't agree that the government by its action or it's -- -- Should should influence one business model over another business model the government shouldn't be picking winners and losers losers in by.
But you can't -- like you're doing that fell by by raising the taxes on the online retailers I mean they could say the exact same thing.
And if you're trying to level the playing noble Amazon is battling right back and they're saying that they're gonna discount their shipping so that they can keep their prices.
Below the brick and mortar because they don't think it's fair and they want to keep their customers.
I mean this is a free market.
And it's about getting customers the best price so I don't think we -- writing against that.
-- you can get -- -- not helping customers get the best price your helping them pay more I don't want to -- our congressman.
Thank you for making my point for me coming on a free market guy to yes I think you did -- because -- -- -- attacks more people.
-- -- -- -- If you believe in free markets you must believe in price is a factor selection is a factor may be service is a factor convenient -- factor.
Should a tax policy be one of the criterion on which people make that decision sure absolutely -- not.
Well because there are use taxes that are in effect those taxes are lawfully due and payable -- just not being remitted.
By the consumer.
And we want to change that we wanna make sure that the playing field is balance that a sale that takes place in on main street in America.
Is it treated the same on tax policy as it is -- on.
Stories I mean you can go into a brick and mortar store and get customer service there's all kinds of added benefits that they have.
And may -- wanna pay for that through the sales tax and it's worth it to you if you go online.
You're buying something virtual that you haven't seen in -- saying he's saving the sales tax I mean there -- benefits and cost of both ways of shopping.
I don't understand why you want to make it more expensive for the consumer at a time when our economy is suffering we don't want to discourage shopping.
What we don't want discouraged shopping in in certainly is -- -- mayor and somebody that but you aren't excited taxes.
Well this is not raising taxes in any and we can have this agreement I think till the sun goes down finally the fact is you made a comment a minute ago about people paying sales tax the so that they can get.
Better service in the store you'll pay sales tax because you get better service in the store and -- -- aren't going to -- you more overall because I'm getting services store.
What do we -- bottom line is I I think a true free market.
Individual believes it price elections -- -- all those kind of things free shipping shopping your pajamas.
Those are part of the business model.
A tax policy that's weighted toward the online remote community I think is terribly.
This advantageous to level the playing field by removing the tax for everyone -- about -- congressman.
-- that's another great thing about my bill states don't have to do this and if states want to reduce their tax burden I think with.
Perhaps -- revenue that they could find from collecting from the online remote sellers it's lawfully -- and payable to them they could reduce taxes I love it I would hope they would let's end on that note we agree thank you so much congressman thank you so he's anti tonight.
