States increasingly fight back against Amazon tax deals as study reveals states have lost $52 billion in untaxed internet purchases in 6 years

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States increasingly fight back against Amazon tax deals as study reveals states have lost $52 billion in untaxed internet purchases in 6 years

Apr 03 2012

US states have lost more than $52 billion during the past six years due to untaxed Internet purchases, according to a University of Tennessee study. Facing massive budget deficits that threaten further cuts to schools and social services, an ever-growing chorus of lawmakers has called for an end to the sales-tax edge long enjoyed by Internet retailers.

The backlash against the tax break - and Amazon's political tactics - has cut across party lines in many states, uniting tea-party Republicans and liberal Democrats alike.

"The perception of the company has changed 180 degrees. It is viewed as the bully in these situations," said Michael Mazerov, senior fellow with the Center on Budget and Policy Priorities, a critic of Amazon's sales-tax stance.

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