(Washington, DC) –America’s online entrepreneurs and their customers deserve protection from asteadily-rising number of predatory tax proposals in states, and federallegislation introduced today by U.S. Representatives Dan Lungren (R-CA) and ZoeLofgren (D-CA) is up to the job. That’s the assessment of the 362,000-memberNational Taxpayers Union (NTU), whose Executive Vice President, Pete Sepp,offered the following statement in strong support of the resolution:
“Inall too many states, 2011’s budget season has meant open season on the onlineretail marketplace. From renewed lobbying efforts to get federal buy-in for anationwide sales tax cartel, to legislation and lawsuits they hope will givethem the ability to tax beyond their borders, revenue-hungry state officialsseem willing to try any political ploy or exotic legal theory that could filltheir coffers. Practically every day, a new proposal is hatched in some state capitalthat would hit online businesses with new taxes in order to feed the recklessspending habits of lawmakers.
Forthis reason alone, quick enactment of the Lungren/Lofgren resolution, whichaffirms that Congress will not give states ‘the authority to impose any newburdensome or unfair tax collecting requirements on small online businesses,’is so imperative. Before states go any further down the road to ruinous taxes –in the process kicking a can-ful of constitutional issues further towardWashington – federal lawmakers should do them a favor by saying ‘enough.’That’s because state tax hikes targeted toward this sector could, ironically,lead to lower revenues.
Onlinebusinesses and their customers already pay many kinds of taxes – on profits,payrolls, the property where they’re sited, and even for the highways thattheir shippers use. Imposing huge new record keeping requirements along withheavier tax burdens could lead to job losses as well as reductions in the verybusiness activity that could contribute to state treasuries. Smaller firmswould be especially hard-pressed to comply with a maze of tax regulations among15,000 jurisdictions. At the same time, a key part of the backbone supporting amore robust economic recovery would be weakened.
LastNovember’s votes have long been counted, but the American people remain fed upwith tired tax hike proposals that harm the economy and fail to address thewasteful spending at the root of so many budget deficits. For their sake, andthe community of online entrepreneurs, NTU pledges a strong grassroots effortto help Representatives Lungren and Lofgren win the support they need inCongress for swift passage of their vital bill.”
NTU is anonpartisan, nonprofit citizen organization founded in 1969 to work for lowertaxes, smaller government, and economic freedom at all levels. The group wasamong the first to support the federal Internet Access Tax Moratorium andoppose the states’ Streamlined Sales and Use Tax Agreement. Note: Formore on NTU’s work in this and other public policy areas, visit www.ntu.org.