Cruz warns of online sales tax in lame duck

Sen. Ted Cruz (R-Texas) is ramping up his pressure against an online sales tax proposal, warning that the upper chamber might try to pass it during the lame-duck session.

In a video, Cruz noted that an internet sales tax passed the Senate last year, and 10 senators who voted for that bill — two Republicans and eight Democrats — are either retiring or lost reelection earlier this month.

{mosads}”This may be their last, best chance to pass it,” he said in the video, telling supporters, “We must say no.”

Cruz also penned an op-ed in The Washington Post earlier this week, blasting the proposal. He is giving a speech later Friday about his “agenda to protect the Internet.”

The Senate last year passed the Marketplace Fairness Act, which would allow states to collect sales taxes on online purchases made from retailers located outside the state. Currently, states can only collect online sales tax from companies that have a physical location in their state. 

The bill passed with 69 votes in the Senate last year but has stalled in the House.

Some members have urged leaders to attach the bill to an extension of the Internet Tax Freedom Act, a law that bans state and local governments from taxing Internet access. The extension has overwhelming support and must be approved by Dec 11. 

House Speaker John Boehner (R-Ohio) opposes linking the two proposals. And Cruz said the Marketplace Fairness Act would put a strain on small online retailers.

“The corporate lobbyists who want Internet taxes to crush their competition see a chance to make it law in the lame duck session of Congress,” he said in the video.