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Outlook for online state sales tax fix dims in U.S. Congress


By Patrick Temple-West WASHINGTON (Reuters) – Prospects for federal action to resolve a fight over state sales taxation of online retailing faded on Wednesday in the U.S. Congress, after a senior Republican lawmaker said more debate is needed before legislation can move forward. The comments by Robert Goodlatte, chairman of the House of Representatives Judiciary Committee reduced the likelihood that the House might support a Senate bill that would empower states to collect sales tax on Internet purchases. The issue has been unsettled for years, with brick-and-mortar retailers, including those with big Internet businesses, saying it is unfair that they must collect state sales tax on their customers purchases, while many shoppers who buy from strictly online retailers pay no sales tax.

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