business news in context, analysis with attitude

• The Sacramento Bee reports that the California State Senate has “passed a bill requiring and other online retailers to charge sales taxes on purchases in California,” a move that could generate an additional $107 million annually for the financially strapped state.

However, Gov. Arnold Schwarzenegger has pledged to veto the bill if it makes it to his desk on the grounds that new taxes will hurt both business and consumers.

This seems to be something of an incipient trend. Just yesterday, MNB noted that reports that the Virginia State Senate easily passed legislation that would require online retailers to collect a five percent state sales tax and sent the bill to the House of Delegates; if it passes there, it is not considered likely to be signed by Gov. Bob McDonnell, who recently won election by vowing to veto any new taxes.
KC's View:
One of these days, an internet sales tax is going to be signed by a governor. And maybe a logjam will be broken.

Not that this is a good thing.