business news in context, analysis with attitude

The Financial Times reports this morning that Congressional Republicans have indicated "that a bill to end tax-free internet shopping was doomed," and will not be acted upon during the lame-duck session taking place before the new GOP-led Congress takes over next year.

According to the story, "The announcement is a blow to retailers which had calculated that the bill had a better chance of passing this year – with control split between Republicans and Democrats – than in a new Congress controlled by Republicans. Although the Republican party is close to business and has policy priorities that closely match those of the US’s biggest companies, the internet sales tax is one area where retailers garner more support from Democrats … Many conservatives – who exert a powerful influence on House Republican leaders – have complained that the bill amounts to a new tax and would expand states’ authority by enabling them to collect tax via online businesses in other jurisdictions."
KC's View:
I think we can expect that the new Congress will focus more on eliminating taxes, not adding new ones. This probably is a dead issue.