Posted on April 22, 2013
The Marketplace Fairness Act would close a 20-year loophole that distorts the American marketplace by picking winners and losers, by subsidizing some businesses at the expense of other businesses and subsidizing some taxpayers at the expense of other taxpayers. The Marketplace Fairness Act:
- IS AN 11-PAGE BILL ABOUT TWO WORDS: STATES' RIGHTS
- States should have the right to decide for themselves whether to collect sales taxes from everyone who owes the tax, or just some of the people who owe the tax.
- REDUCES TAXES OR AVOIDS NEW TAXES
- States could reduce taxes, or avoid a tax altogether, if they could collect all of the taxes that are already owed.
- CLOSES A TAX LOOPHOLE
- Out-of-state businesses are being subsidized because they don’t have to collect the state sales taxes the same way local businesses do.
- PROTECTS SMALL BUSINESSES
- Exempts sellers with less than $1 million in remote sales each year
CONSERVATIVES SUPPORT MARKETPLACE FAIRNESS
- Al Cardenas, Chairman of the American Conservative Union – “When it comes to state sales taxes, it is time to address the area where federally mandated prejudice is most egregious – the policy toward Internet sales, the decades old inequity between online and in-person sales as outdated and unfair.”
- Governor Mike Pence – “I don’t think Congress should be in the business of picking winners and losers. Inaction by Congress today results in a system today that does pick winners and losers.”
- Governor Mitch Daniels – “Sales taxes that states impose ought to be paid, and paid by everybody equally and collected by everybody in the retail business … We’re not talking about an additional or new tax here – we’re talking about the collection of a tax that’s existed a long time.”
- Art Laffer – “The principle of levying the lowest possible tax rate on the broadest possible tax base is the way to improve the incentives to work, save and produce—which are necessary to reinvigorate the American economy and cope with the nation's fiscal problems. Properly addressing the problem of e-fairness on the state level is a small, but important, step toward achieving this goal.”
Note: Click here see Senator Alexander's statement on the U.S. Senate's vote to begin debate on the legislation. Click here to the senator's statement on the vote to end debate, and a fact sheet on the legislation.