Committee Zaps Streamlined Sales Tax Proposal
Committee Republicans killed a proposal by Gov. Doyle to step up the state's collection of sales and use taxes to include Internet-based commerce, calling it a tax increase.
Democrats argued the streamlined sales and use tax is an aid to small businesses who can't compete with Internet Wal-Marts" who escape state sales taxes because they aren't brick-and-mortar retailers.
The tax would have pulled in more than 26 million over the biennium to state coffers.
Dem Rep. Mark Pocan warned the committee against "passing another corporate tax break because WMC's asked for it." Dem Rep. Pedro Colon said Wisconsin should be leading on this issue, not trailing behind other states because "a few marginal people don't want us to move forward."
GOP Rep. Scott Jensen said those people living in the past must include the U.S. Supreme Court, which decided states can't levy taxes against a business that doesn't have a nexus located within it.
Jensen added there are many tax increases in the governor's budget. "This is the biggest."
The committee decided to ditch the Doyle proposal and stay with current law on a 12-4 party line vote.
