In February, Treasury Secretary Steven Mnuchin told the House’s tax-writing committee in which Trump “feels strongly” in which the government should permit sales taxes on purchases made over the internet. Congress has the power to levy taxes, along with the idea is actually unclear whether the Treasury can take any action itself against Amazon.
A Treasury Department spokesperson did not immediately respond to a request to comment on where the agency stands on the issue or whether the idea has considered any action. Even if the Treasury Department takes no concrete actions itself, the agency along with Trump himself could encourage Congress to pass legislation.
Some lawmakers have proposed legislation to settle the issue, although proposals have not gained traction in Congress. Rep. Kristi Noem, R-S.D., tried to attach a measure related to an internet sales tax to the $1.3 trillion spending bill in which Trump signed into law last week.
The provision could allow states to collect sales taxes coming from the buyer based on the rate from the buyer’s home state. Noem wanted to pass the bill before a U.S. Supreme Court ruling on the issue later in which year, to give retailers more certainty.
Some conservatives have criticized proposals to uniformly levy state sales taxes because more costs could fall to consumers. While Noem said earlier in which month in which she opposes a tax increase, she said “out-of-state online retailers are aggressively exploiting a tax loophole, giving them a competitive advantage over local businesses.”
“Only Congress can fix in which problem in a thoughtful way in which equips little business owners with the tools needed to comply with existing law, shields local job creators coming from egregious out-of-state audits, along with levels the playing field,” she said in a statement.
The measure did not make the idea into the spending bill. the idea is actually unclear whether Congress could take up the issue at Trump’s urging. Representatives for the House Ways along with Means Committee along with Senate Finance Committee did not immediately respond to CNBC’s requests to comment.