The streamlined sales tax concept that
I oppose that Governor Doyle included in his state budget proposal has cost the state of Michigan dearly.
Michigan entered into the multi-state agreement three years ago to collect sales taxes from Internet purchases by Michigan residents from out-of-state companies.. The deal has turned into a fiscal nightmare for Michigan.
The Detroit News reports Michigan has gained nothing in an effort to gain back uncollected sales tax revenue. The state has actually lost money, between $7 and $10 million a year since joining the streamlined sales tax agreement with other states.
Michigan’s director of the Treasury’s bureau of tax policy has informed Michigan lawmakers he doesn’t know when the state will be able to recoup its losses.
The streamlined sales tax is a tax increase that will stifle Internet commerce. Once again, I call on Wisconsin to reject this idea and keep it out of the state budget.
Here are more
details on the effect of the streamlined sales tax agreement on Michigan.
