• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Heritage Briefing: Internet Sales Tax

    With talk heating up for Congress to create an Internet sales tax, Heritage pulled in leading telecommunication and tax experts yesterday for a Capitol Hill briefing on the potential fallout that the misnamed Marketplace Fairness Act (MFA) could have on e-commerce.

    Katie McAuliffe, federal affairs manager for Americans for Tax Reform, and Carl Szabo, policy counsel for NetChoice, were quick to run through the litany of hurtful impacts the bill, currently with the House, could have on online businesses.

    These effects include requiring online retailers to become tax collectors for 46 states, the District of Columbia, and all U.S. territories and possessions; facing multiple out-of-state audits if online businesses fail to collect the right amount of taxes from out-of-state customers; unforeseen compliance costs; and a larger barrier for expanding or creating new business on the Internet.

    The MFA “is not going to be much of a revenue source for states. It’s not federalism. And it’s not sustainable,” said McAuliffe.

    Plus, catalog and mail-order sales—which are especially popular for Americans older than 50—have been largely forgotten in the debate, Szabo noted. “Catalog sellers will have to custom print their catalogs by locality to comply with the new tax law, and how will they make up that cost? By passing it down to consumers through higher prices,” he told the crowded room in the Rayburn House office building.

    Check out McAuliffe and Szabo’s full remarks in the video above and get more details about the MFA through Heritage’s new fact sheet.

    Posted in Economics [slideshow_deploy]

    Comments are closed.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×