Washington, D.C. – NetChoice Executive Director Steve DelBianco today testified before the House Judiciary Committee about the dangers of enacting the Main Street Fairness Act (H.R. 3179).
While the proposal is intended to put traditional brick-and-mortar retailers on a level playing field with online retailers, it widely misses that mark while adding unfair new tax burdens on small online and catalog businesses.
NetChoice also announced its membership in a coalition dedicated to opposing new taxes on Internet sales. The True Simplification of Taxation (TruST) Coalition represents American businesses in the fight to keep interstate commerce and competition free from unfair tax burdens imposed by states where our businesses have no operations or representation.
Businesses that sell goods and services online are already required to collect taxes in areas where they have a physical location. Research shows that uncollected taxes related to online sales equal less than one half of one percent of state tax revenues.
“Even though the vast majority of online sales taxes are already collected, state tax collectors and big box retailers are teaming up to levy taxes on businesses that have no local presence,” said Steve DelBianco, executive director or NetChoice. “TruST will counter this new tax campaign that would saddle online retailers with a new and burdensome tax system that weigh most heavily on the smallest of sellers.”
States have tried and failed to simplify their tax systems in a way that would not add cost or complexity for online retailers. Having failed at that program, tax collectors are now asking Congress for the authority to tax first and answer questions later.
TruST will be an ongoing resource for those mobilizing against new online taxes that will slow and harm the growth of online retail.
NetChoice is an advocacy organization that fights threats to online commerce and promotes policies that protect Internet innovation and communication on a state, federal and international basis. The Washington, DC-based group protects Internet commerce-driven competition and battles rules that hinder consumer choice and hurt small businesses. For more information, see www.netchoice.org.