Internet tax supporters promise to allow amendments

The sponsors of Internet sales tax legislation promised to allow floor votes on all relevant amendments.

"We want those members who have germane and relevant amendments to come forward," Sen. Dick Durbin (D-IL) said at a press conference on Capitol Hill. "We want to have an opportunity to debate and vote on it." But he emphasized that because the legislation only affects state tax revenue, he would seek to block any amendments related to federal revenue. Sen Durbin said the sponsors "bent over backwards" to address concerns about small online businesses and said that fewer than 1,000 online retailers would likely be covered by the bill because of the current exemption. The sponsors also rejected the suggestion that states should be able to opt-out of having their retailers collect online sales taxes. Bill co-sponsor Sen Mike Enzi (D-WY) warned that such an amendment would encourage all online retailers to re-locate, at least legally, to states without sales taxes. "It's not a compromise," Sen Enzi said.

Bringing the bill directly to the Senate floor skipped over Finance Committee Chairman Max Baucus (D-MT), whose panel has jurisdiction over tax issues. On April 22, Chairman Baucus offered to hold a hearing and committee vote on the bill in the next Senate work period. But the sponsors said they have no plans to pull their bill now.