U.S. Sen. Steve Daines (R-MT) called on House Speaker Paul Ryan (R-WI) and Senate Majority Leader Mitch McConnell (R-KY) on Cyber Monday to reject any legislation attempting to impose Internet sales tax requirements that would hurt online retailers.
Daines joined Sens. Kelly Ayotte (R-NH), Marco Rubio (R-FL) and Mike Lee (R-UT) in a letter to Congressional leadership meant to highlight the costly impact that a federal Internet sales tax would have on small businesses that rely on the Internet to grow their business and create jobs. If implemented, small businesses would be required to collect sales tax on behalf of 9,600 cities and states nationwide.
“The Marketplace Fairness Act would allow states to force retailers that have zero physical presence in a state outside of their own to collect and remit sales tax to it,” the letter said. “This would be especially devastating for Internet retailers in states without a sales tax. The bill could lead to Internet retailers in all states being forced to become tax collectors for nearly 10,000 tax jurisdictions across the country. Only in Washington would such a proposal be labeled as the ‘Marketplace Fairness Act.’”
Blocking the implementation of federal Internet sales tax legislation has long been a priority for Daines, who has been outspoken against the Marketplace Fairness Act since its inception. As a member of the House, Daines has led several rallies against the proposal.
“And now politicians see these growing Internet businesses as a new source of tax revenue to fund bigger government and fill budget holes created by their own reckless spending decisions,” the letter said. “President Ronald Reagan diagnosed this problem long ago when he said: ‘Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.’ We should be focused on policies that encourage economic growth and job creation, instead of imposing new financial burdens and onerous regulations on businesses and interstate commerce. Instead of protecting and fostering e-commerce, online sales tax legislation would stifle small business growth and job creation.“