MARKETPLACE FAIRNESS ACT - RYAN RADIA & HANS BADER
Economic and Legal Problems with Internet Sales Taxes
CEI released a new study analyzing the economic downsides and legal problems with Internet sales taxes on the state and federal levels. With Congress poised to consider a similar tax in the Marketplace Fairness Act during this lame-duck session, lawmakers should preserve states’ rights to compete and not give into big-box retailers and their lobbyists.
The authors cite how the adoption of nexus taxes resulted in Overstock.com pulling out of its affiliate business in New York, while in North Carolina, many retailers cut ties with affiliate marketers in that state.
"Congress should reject legislation like the Marketplace Fairness Act (MFA) because it would take more money out of consumers’ pockets, discourage entrepreneurs, and harm small businesses. It would create a sales tax cartel punishing Internet retailers,” said CEI's Ryan Radia. > Read more
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