PublishedFebruary 14, 2013

CCIA Opposes Marketplace Fairness Act

The Computer & Communications Industry Association continues to oppose legislation, such as the Marketplace Fairness Act introduced today, which would impose burdensome tax collecting requirements on online retailers — regardless of physical presence.  While we understand and share the desire for state and local governments to be adequately funded in these times, we believe this is the wrong approach.  Far from being fair or leveling the playing field, such legislation would create a new imbalance by requiring small online retailers to administer a tax collection regime for multiple jurisdictions, while brick-and-mortar stores need only collect for the jurisdiction of its physical location.

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

“The technology industry is prepared to be a constructive player in meaningful efforts at tax reform that ideally would include steps to streamline the tax code.  But requiring Internet retailers, especially small ones, to collect taxes across multiple jurisdictions regardless of physical presence now is heading in the wrong direction.”

“Congress should be encouraging small online retailers to utilize new technologies and innovative new business models like e-commerce, not penalizing them by saddling them with the tax collection burdens of a 20th century tax system.”

“Good tax policy needs to promote and support new business models rather than devouring our innovative seed corn by seeking to profit from protecting the old.”

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