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Conservative Groups Praise Congressional Hearing to Address State Taxes on Internet Sales

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July 24, 2018

Twelve conservative groups sent a letter to the leaders of the House Judiciary Committee to praise them for holding a hearing Tuesday concerning state taxing power on internet sales.

The letter, signed by groups including National Taxpayers Union, Heritage Action, and FreedomWorks, argued that the Supreme Court’s ruling in South Dakota v. Wayfair Inc. has unleashed states "to expand taxing authority beyond their borders." The groups view the purported result as a serious danger to the economy, one that Congress must rein in by using its authority over interstate commerce.

"First and foremost, Congress should act to stop a mad dash for new cross-border power," the letter states. "Then it can do the difficult but necessary work of establishing a responsible national approach to the vital questions surrounding taxes and the internet."

The groups disagree with the Court’s ruling and said businesses should be protected from excess state taxes.

"The resulting rush of state actions could force sellers all across the country to collect and remit sales tax for as many as 12,000 taxing jurisdictions nationwide, a task that would be difficult for any business but is particularly burdensome for small businesses," the letter says.

The case dealt with South Dakota’s taxes but has sweeping implications for the whole country, and the letter argues only Congress is equipped to set reasonable standards.

"No Supreme Court case involving one small state can possibly set reasonable nationwide standards," the letter says. "That is why this hearing is so important to start the important work of Congress in crafting a solution to end confusion and create sensible rules that minimize burdens to interstate commerce and mitigate the impact on small internet retailers."

Published under: Taxes