Corbett’s tax hike: Retailers, not the state, must collect on online sales

From the PITTSBURG POST-GAZETTE:

…Gov. Tom Corbett’s Revenue Department is planning to include a new line on the 2011 income tax forms that will require filers to report what they spent on online purchases that went untaxed. Pennsylvanians who don’t want to do the math will be allowed to use an estimate based on their income.

What’s likely is that many taxpayers will report zero, which means many of them will be lying. That’s been the experience in other states, including Ohio, where just 46,476 of its 5 million households complied last year.

Even the backers of Pennsylvania’s plan aren’t optimistic. The department says the effort will net just $5 million to $6 million next year, less than 2 percent of the $380 million that is lost because online retailers don’t collect the tax…

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