A group of conservative grass roots organizations sent a letter to lawmakers urging them to pass the online sales tax Marketplace Fairness Act, in order to “close a tax loophole that punishes small businesses.”
The three-page letter signed by the presidents of Let Freedom Ring, American Majority, 60 Plus Association, and Americans for Job Security, emphasized the bill is a “common-sense solution to the current unequal tax treatment of online retailers and their brick-and-mortar competitors.”
The letter comes in stark contrast to several Republican party leaders, including House Speaker John Boehner, R-Ohio. and anti-tax crusader Grover Norquist, who have both denounced the bill.
Earlier in May the Senate passed S. 743, which would enable states to collect sales taxes from Internet purchases. The bill would require out-of-state retailers to collect sales taxes when online goods are sold. Currently, only retailers who have a physical presence in a state can be required to collect sales tax.
The bill now sits before the House Judiciary Committee, which has jurisdiction over it. Committee chairman Rep. Bob Goodlatte, R-Va., has expressed skepticism and since the Senate’s passage of the bill has not scheduled a hearing on it. Committee aides would not comment if a hearing would be scheduled on the legislation.
“The Marketplace Fairness Act asserts federalism by returning decision-making authority over the collection of state taxes to state legislatures, where it belongs,” the groups wrote. “We urge you to reject red herring arguments that have arisen in recent weeks, and closely evaluate this important piece of legislation on its merits.”