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Internet Tax Mandate Will NOT Save the States

New figures show that states that implemented Internet sales taxes raised 75-80% less than they expected to raise. For example, California was estimated to raise $457 million for online taxes but only raised $96.4 million, while New York expected to raise $2.5 billion from sales taxes and only collected $360 million.

These figures disprove the argument that the National Internet Tax Mandate will help states address their fiscal difficulties. Instead of scheming to raise taxes on their constituents, governors like Virginia’s "Tax Hike" Bob McDonnell should be working to cut wasteful state spending.


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