Sen Durbin says online sales tax needed to save states, brick-and-mortar stores

Senate Majority Whip Dick Durbin (D-IL), a cosponsor of a bill allowing states to collect taxes from online sales, said that the bill is needed to save states that are drowning in red ink, and brick-and-mortar stores that are trying to compete with Internet retailers.

"My state is struggling, terrible budget problems," Sen Durbin said. "We're in the red with deficits, pension system is in trouble. Money that should be collected for sales tax, not being collected." The bill being considered today would allow states to collect the sales tax from online retailers, most of which are allowed to escape the collection of taxes from the 46 states that have a sales tax. Sen Durbin said few people are aware that they are supposed to pay this tax each year. "It's really an honor system, that's what it comes down to," he said. "It turns out only one out of 20 people in Illinois even know this exists. Five percent of the population knows." Sen Durbin said he has paid the tax on his own online purchases, ever since his accountant asked if he wanted to pay them. "I said, 'I think I do,' and I did, and I have ever since," Sen Durbin said.