Groups Raise Concern with Internet Sales Tax Bill

November 14, 2014

In the last few weeks, a number of groups and organizations across the country have publicly expressed concerns with the Marketplace Fairness Act. Although House leaders have been clear that they have no intention to pass the legislation, Senate leaders have expressed their intent to move the bill in the final weeks of Congress. Due to the complexity of the bill and the impact that it would have on tech-enabled businesses all across the country, policy groups and advocacy organizations have raised their voices and have called on Congress to keep this bill out of the lame duck session of Congress. See what they have to say:

Katie McAuliffe, Executive Director of Digital Liberty

“Passing a short term extension of the Internet tax moratorium that still allows states to implement Internet access taxes is not a ‘deal’ Americans should accept. It is far better to let the moratorium expire and reinstitute in the next Congress than to accept a bill that exposes Americans to 45 different state departments of revenue and 50 states regulatory burdens.”

Grover Norquist, President of Americans for Tax Reform

Too many politicians in state capitols and Washington have looked at the internet only as a way to raise taxes. They want to tax Internet access, they want to tax Internet sales.

Jim DeMint, President of Heritage Foundtaion

“Lame duck lawmakers could use this year’s post-election session to push through a costly omnibus spending bill…with total impunity. Those who want to further burden Americans by taxing their Internet purchases also are contemplating the chance to ram through the misleadingly titled 'Marketplace Fairness Act.' The 'fairness' here means you send more money to the government!”

Steve DelBianco, Executive Director of NetChoice
“As a general rule, the less you hear about a particular political strategy, the more you should worry about it. So it’s telling that an effort by the Senate to impose a radical new Internet sales tax regime during this year’s lame-duck session is being planned in secluded Capitol hallways, far from public scrutiny.”

Bartlett Cleland, Innovation Policy Institute

“The MFA would eliminate any requirement that businesses have a physical connection to a taxing jurisdiction before it can be forced to levy taxes on its sales. If this law were to pass, a person merely calling up a business’s website would be enough to require that business, and hence consumers, pay taxes in the state where the customer resides. Out-of-state tax authorities could audit businesses in any state—regulation without representation or reprieve. A discriminatory Internet tax would look promising by comparison.”

Find more information on eBay Inc.’s position on the issue and join the number of voices that have called on Congress to oppose attempts to pass the Marketplace Fairness Act in the lame duck.