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The 39 House Democrats Who Defied Obama’s Veto Threat

Updated 4:04 p.m. | President Barack Obama vowed to veto legislation that would let insurers keep selling old policies to new customers, as well as revive them for existing customers for another year, but 39 Democrats defied him and their party leadership Friday and voted for the bill.

All but three of the Democratic members on the Democratic Congressional Campaign Committee’s Frontline incumbent protection program voted with Upton and the GOP — Ann Kirkpatrick of Arizona, Lois Capps of California and John F. Tierney of Massachusetts.

But Kirkpatrick wasn’t exactly aligning herself with the president, either, issuing a blistering statement after the vote.

“The stunning ineptitude of the ACA marketplace rollout is more than a public relations disaster,” she said. “It is a disaster for the working families in my Arizona district who badly need quality, affordable health care.”

Read More on Roll Call: The 39 House Democrats Who Defied Obama’s Veto Threat

Military Sexual-Assault Bills Touch Raw Political Nerve for Democrats

Democrats seem to agree on the need to address the rising number of sexual assaults in the military, but the intraparty battle over the issue has gotten deeply personal and could end up politically damaging to those who have been tagged as “anti-victim.”

Democratic leaders are dreading having what is likely to be an emotionally charged fight play out on the Senate floor when the chamber takes up the Defense authorization bill in the next few weeks.

“I would be less than candid if I didn’t say this has been — for somebody who has fought and has a long history of victim advocacy, from my days as a state legislator to my days as a prosecutor to establishing laws and programs and fighting for victims all my life — that it’s been very difficult to be characterized as anti-victim,” Sen. Claire McCaskill told CQ Roll Call.

The Missouri Democrat has been one of the lead supporters of keeping sexual-assault cases within the military’s chain of command while making other key changes aimed at addressing the issue. On the other side, Sen. Kirsten Gillibrand, D-N.Y., has been aggressively pushing to take commanders out of the mix when it comes to sexual-assault allegations.

Senate Majority Leader Harry Reid, D-Nev., has been coy about his plans to proceed on competing proposals to curb what has become a crisis in the armed forces. While most of his caucus members support Gillibrand’s framework, at least a dozen Democrats likely will vote for the Senate Armed Services Committee markup language being championed by McCaskill.

Read More on Roll Call: Military Sexual-Assault Bills Touch Raw Political Nerve for Democrats

Wash. Legislature Will Reconvene to Vote on Boeing Construction Package

Avi Niman of StateTrack reports that Washington Gov. Jay Inslee (D) has called a special session of the state’s legislature, to convene Nov. 7. Lawmakers will consider approving a package of legislation that will enable the construction of the new 777X jetliner by The Boeing Company in Everett, Wash.

The proposed package includes tax incentives, education and workforce development, a transportation revenue package, streamlined permitting, and water quality solutions. Inslee has stated that ratification of this legislative package is crucial for the economic growth and development of jobs in the state.

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Internet Sales Tax Debate Rages in the States

Amazon.com began collecting the 6.25 percent state sales tax on any purchases by Massachusetts’ residents starting November 1. The tax revenue collected by the company will then be submitted to the state’s Department of Revenue.

Amazon.com agreed to collect the tax when it acquired Kiva Systems last year based in North Reading, Massachusetts. Amazon is now either collecting state sales tax or is expected to start for orders originating in 16 states: Arizona, California, Connecticut, Georgia, Indiana, Kansas, Kentucky, Massachusetts, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington, West Virginia and Wisconsin. 

The main reason the company agreed to voluntarily collect online sales taxes in these states was directly due to the establishment of a physical presence in those states as Amazon.com has opened fulfillment warehouses, made acquisitions or agreed to keep in-state Amazon.com associates. Amazon.com simply dropped their sales affiliates in seven states where the company had no physical presence instead of collecting and remitting sales taxes including: Arkansas, Maine, Missouri, Minnesota, North Carolina, Rhode Island and Vermont.

The practice of taxing an out-of-state retailer for in-state sales was largely invalidated in the 1992 Supreme Court Ruling Quill Corp v. North Dakota. Since then, a new type of tax law, dubbed ‘affiliate nexus’ laws, have begun to take a new approach by taxing the sales of online retailers who do business through a third party located in the state. Typically, these third parties will link to a vendor’s website and are in turn compensated for any sales made through these types of referrals. If the amount of sales made through these referrals exceeds a certain threshold, typically $10,000, then all of the vendor’s sales made to consumers in that state become subject to state tax laws.

For example, Arkansas in 2011 enacted a law to require large e-commerce retailers to collect and remit state sales taxes if they generate more than $10,000 in sales a year through in-state sales affiliates. Connecticut requires e-commerce retailers to collect and remit state sales taxes if they generate more than $2,000 in sales a year through sales affiliates based in the state. A seller who enters into an agreement with a person in Maine, for a commission or other consideration, refers potential customers and has cumulative gross receipts from retail sales in excess of $10,000 must register with the tax assessor and collect and remit taxes. In Rhode Island, retailers that generate more than $5,000 in sales through sales affiliates based in the state must collect the tax. In response to these initiatives, Amazon has canceled affiliation agreements in many of the states that have enacted this type of law.

Meanwhile, the issue has been working its way through the courts. The Illinois Supreme Court on October 18 struck down an affiliate nexus law. The decision was a first, as courts in New York had previously upheld them. The Illinois court’s majority argued that there does not seem to be a difference between digitally linking customers and using means that are not taxed, like advertising promotional codes in print publications or radio broadcasts.

For years many state lawmakers have been hoping Congress would resolve the issue, but the current bill, The Marketplace Fairness Act, is stalled in the House. This bill would grant states the authority to compel online and catalog retailers, no matter where they are located, to collect sales tax at the time of a transaction. The bill would grant this authority only to states that have simplified their sales tax laws. Under this bill any online retailer with sales exceeding $1 million across all states would become subject to the same in-state taxes as brick and mortar operations. Notably, Amazon supports this bill but other online giants like eBay do not.