PublishedFebruary 16, 2011

CCIA Welcomes Lungren-Lofgren Resolution Against Internet Tax Collection

The Computer & Communications Industry Association (CCIA) applauds Rep. Dan Lungren (R-CA) and lead Democratic co-sponsor Rep. Zoe Lofgren (D-CA) for introducing the “Supporting the Preservation of Internet Entrepreneurs and Small Businesses” resolution (H.Res. 95), a bipartisan resolution opposing any Congressional legislation granting state governments authority to impose new burdensome or unfair tax collecting requirements on small online businesses and entrepreneurs.

By their leadership in introducing this Resolution, Rep. Lungren and Rep. Lofgren are demonstrating that they understand that small businesses are the engine of our economy and how important the continuing development of e-commerce is to it. It is also important to note that the resolution’s lead sponsors have had broad experience that includes service in state and local government as well as their service in Congress, and thus appreciate the full range of issues related to this type of proposal.

The following statement can be attributed to CCIA President & CEO Ed Black:

“CCIA has long opposed taxes on e-commerce as burdening on-line vendors with the task of sorting through the policies of thousands of taxing authorities around the country, and serving as revenue collection agencies for each of them. As innovation and entrepreneurship have always been the drivers of our economic growth, it is counterproductive to add to the administrative burdens of small businesses at the very moment we need them growing and leading our economic recovery.”

“E-commerce has enabled businesses to broaden their scope beyond traditional geographical limitations. Allowing states to impose geographically-based taxation collection requirements on e-commerce businesses would re-impose the very limitations that innovation has enabled them to overcome. It is heartening to know that there are those willing to stand up in support of innovation and entrepreneurship against retrogressive measures that would draft online vendors into service as remote sales tax collectors.”

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