Tech Groups Express Opposition to Internet Sales Tax Amendment

December 4, 2012

A number of technology groups have expressed their opposition to attaching an Internet sales tax amendment filed by Senator Dick Durbin (D-IL) to the National Defense bill currently being debated in the U.S. Senate. Online retail is currently a bright spot in our nation’s economy and representatives from the Tech community are concerned about the potential negative impact this amendment could have on small online retailers if it were to be enacted into law.  Please read below for the full statements from CCIA, TechAmerica and TechNet:

“This proposal, and other online sales tax collection proposals like it, would allow states to penalize the innovative e-commerce business model by targeting small online businesses as convenient sources (and collectors) of revenue. Severing the relationship between taxation and physical presence would be a fundamental transformation in how we consider taxes. Such a significant step deserves more extensive consideration than attachment to the unrelated Defense Authorization bill. It is not the job of small businesses to collect taxes to provide tax revenue relief for state and local governments. What we need are pro-growth policies that foster innovation and progress -- rather than protecting existing business models at the expense of consumers and growth.” - Computer & Communications Industry Association (CCIA) President & CEO Ed Black

“We urge Senate Leadership to remain vigilant in its efforts to keep this bill clean by not adding this out-of-place amendment to the NDAA, as it unfairly targets Internet retailers with a serious new tax burden just as the U.S. has begun our recovery from one of the greatest economic downturns in its history. We can’t let this critical piece of legislation become a political football for misguided legislation. We firmly believe that the Market Place Fairness Act is bad legislation whether it is a standalone bill or an amendment because it would place an unreasonable burden on Internet businesses, most of whom are small. We must continue to remain vigilant in fostering pro-growth policies that favor our nation’s small businesses so they can prosper and grow, directly benefiting our economy at a time when we need it most.” - TechAmerica Senior Vice President of Federal Government Affairs Kevin Richards

“Online sales continue to be a bright spot in an otherwise challenging economy for businesses both large and small. The Marketplace Fairness amendment would threaten that success, especially for small retailers, by unleashing a flood of onerous and expensive tax requirements on entrepreneurs. We do not support any effort that will make it more difficult for new competitors and innovators to succeed.” - TechNet President & CEO Rey Ramsey