Just when you thought showrooming was here to stay, the Senate throws brick-and-mortar retailers a lifeline.
For many physical retailers including Best Buy, a national Internet sales tax may signal the early arrival of Christmas. The potential collapse of the pricing advantage for online-only retailers may help brick-and-mortar models avoid a Circuit City fate. It is also good news for consumers, from a competitive stand point, and for states who will now collect much-needed incremental sales tax.
With yesterday's Senate vote of 69 to 27, passing the Internet sales tax, retailers are one step closer to a level pricing playing field. Now the bill moves on to the House of Representatives, where there will likely be more push back. Some view the bill as an incremental tax on the consumer, despite the fact that consumers are supposed to self-declare Internet purchases on their tax returns.