Why the Internet Sales Tax Is a Really Bad Idea

This week, U.S. Representative Kristi Noem (R-S.D.) made headlines when she threatened to use a discharge petition to force a House floor vote on her Internet sales tax legislation. While some may find it strange that a Republican would use a rare procedural tool to raise taxes, Rep. Noem’s home state of South Dakota (where she is running for governor) stands to receive a big windfall if passed. Rep. Noem’s bill, the Remote Transactions Parity Act (RTPA), would give states the power to tax Internet sales that take place beyond their borders. Collecting taxes on businesses that aren’t physically present