(Alexandria, VA) – Today, the 362,000-member National Taxpayers Union (NTU) joined with the North Dakota Taxpayers Association to condemn legislation in Congress, and efforts in State Legislatures, that would allow governments to compel collection of sales taxes from out-of-state businesses.
Pete Sepp, NTU Executive Vice President, issued the following statement:
“The Main Street Fairness Act is a deceptively-named piece of federal legislation that threatens taxpayers, consumers, and small businesses across the nation, including those in North Dakota.
“The measure is in reality a rehashed attempt to invigorate the Streamlined Sales and Use Tax Agreement (SSUTA) that empowers a cartel of tax administrators to insulate high-tax, fiscally irresponsible states such as Illinois and California from healthy interstate competition.
“The bill has the potential to create billions in new tax obligations, assaulting e-commerce, one of the bright spots in a dim economy. Small businesses are increasingly participating in online sales, and the “Main Street Fairness Act” would impose a massive compliance burden on them, which can’t simply be waved away with compliance software. There’s also an important long-run consideration: online transactions already generate revenue for states through transportation taxes, payroll taxes, use taxes, and more.
“The National Taxpayers Union is proud to stand with the North Dakota Taxpayers Association in opposition to the ‘Main Street Fairness Act.’ North Dakota has benefitted and will continue to benefit from positive policies that keep taxes under control for everyone, whether they’re brick-and-mortar retailers or online businesses. We urge state and federal leaders to instead back constructive proposals like U.S. House Resolution 95, which affirms that Congress won’t give states ‘the authority to impose any new burdensome or unfair tax collecting requirements on small online businesses.’”
Dustin Gawrylow, Executive Director of the North Dakota Taxpayers’ Association, issued an accompanying statement:
“The North Dakota Taxpayers Association is proud to have the vocal support of the National Taxpayers Union as we work to convince North Dakota’s elected officials they shouldn’t support the dangerous “Main Street Fairness Act.”
“North Dakota’s government is not in need of revenue, and has no business passing power off to Washington, or supra-state bureaucrats, to impose greater tax burdens.
“Hitting small, local, businesses with such a great compliance burden for venturing into the online realm, or simply taking more money out of the pockets of consumers, is a no-win situation for the people of North Dakota.
“We will continue to work with NTU, taxpayers, and concerned citizens to avoid this unnecessary and damaging online sales tax collection scheme.”
The 362,000-member NTU is a nonpartisan, nonprofit organization working for lower taxes, smaller government, and economic freedom at all levels. More information on NTU’s work in North Dakota is available at www.ntu.org.