Dear Senators:
On behalf of more than two million Americans for Prosperity activists in all 50 states, I urge you to oppose Sen. Enzi’s so-called Marketplace Fairness Act (S. 743). This bill would allow states to tax online sales from companies in other states, shifting the tax collection burden onto out-of-state businesses. Free market advocates should oppose this proposal, as it has serious logistical, economic and constitutional flaws.
I urge you to vote NO on S. 743, the Marketplace Fairness Act., the flawed internet sales tax bill. Americans for Prosperity will include this vote in our congressional scorecard.
This bill would not level the playing field; it would burden online retailers in a way that brick-and-mortar stores are not. Complying with the internet sales tax would be a considerable administrative burden for companies, particularly for small businesses. Keeping track of the 9,600+ different tax jurisdictions throughout the country, with constantly-changing rates, bases, and collection methodologies, would be very challenging for online retailers that have a national consumer base. States are simply trying to shift the administrative burden for tax collection to out-of-state retailers.
The Supreme Court has already ruled that a similar approach is unconstitutional. In Quill Corp. v. North Dakota (1992), the Court held that state governments cannot force companies to collect and remit sales taxes unless they have a physical presence, or “nexus,” within the state’s borders. The so-called Marketplace Fairness Act evokes many of the same “taxation without representation” and Commerce Clause issues that Quill presented. Additionally, allowing a subset of states to set national tax policy may be an inappropriate delegation of one of the Federal Government’s core functions.
I urge you to vote NO on S. 743, the Marketplace Fairness Act., the flawed internet sales tax bill. Americans for Prosperity will include this vote in our congressional scorecard.
Visit our scorecard online: www.afpscorecard.org
Sincerely,
James Valvo
Director of Policy
Americans for Prosperity
© 2023 AMERICANS FOR PROSPERITY. ALL RIGHTS RESERVED. | PRIVACY POLICY
Receive email alerts to learn how to get involved