Byron Dorgan: “First of all, when someone purchases something on the Internet or from a catalog, there is actually a tax owed in most…”

“First of all, when someone purchases something on the Internet or from a catalog, there is actually a tax owed in most cases. It is just that it is never paid. Most Americans when they order something from a catalog are required to submit a use tax to the State, because the seller wasn't required to collect the sales tax. The buyer is supposed to send a use tax to the State government, but they never do and never will because it would require literally millions of tax returns being filed for a $1.20 or $2.80 purchase. That is why it was always much more effective to collect a sales tax at the source. I agree with those who say we don't think catalog sellers or Internet sellers or remote sellers ought to be required to subscribe to 7,000 different taxing jurisdictions; that is not fair. I agree with that. That is why I say, if you are going to simplify the collection system and allow it to have the remote sellers collect it, then you really need to simplify it in a way that is substantive. Let me make this point also: It is not the case that the Supreme Court has said there is no inherent right for State governments to tax in these circumstances.”