US Senator supports reform in sale tax for online transactions

The debt-crisis driven US economy seeks for earning from  taxes from online transactions  and that too in billions! A senator presents a bill on Friday that claims to seek solutions for the giant financial crunch that the US economy is fighting with, by earning from nothing.

The United States is to lose an additional $10 billion in 2011 and $11.4 billion next year to pay sale taxes which are left uncollected during online shopping and other transactions, concluded a group of three professors at Tennessee.

Democratic Senator Dick Durbin, who has come up with a bill for sale tax reforms is supported by institutions like the National Governors Association as well as the National Retail Federation  and also received affirmation from many online retailers, including Amazon.

Luke Kenley, a state senator from Indiana confirmed that this strategy is being initiated at the state level and a group of 24 states called Streamlined Sales Tax Governing Board, which he heads, is already calling on the Congress to come up with a uniform sale tax for all retailers, be it online or else.

Currently accounting for a volume of size of $165 billion, the online retail market is a new sphere of attention for the financial experts, who predict a bright possibility of 15 percent annual growth in the industry in next ten years.