Yesterday governors, legislators, congressional leaders, technology companies and small business owners held a meeting to promote the Senate's recently passed Marketplace Fairness Act legislation, which proponents hope will get the same kind of approval in the House. The bill creates ways for states to collect online sales tax across state lines. Traditional retailers say that these taxes level the playing field because it forces all businesses to collect sales tax, and takes away the tax-free advantage online retailers have had for years. The meeting was spearheaded by the National Governor's Association (NGA) and was designed to convince lawmakers in the House.
“This has long been a priority issue for the nation’s governors,” said NGA Executive Director Dan Crippen. “This bipartisan legislation seeks to reverse federal intrusion into state tax authority and keep jobs in our communities and bring much needed revenue to strained state budgets across the United States. The Internet has spurred our economy and increased choice, but it does not need a subsidy—it needs to follow the rules like everyone else.”
Getting the bill passed in the House will be an uphill battle because it is controlled by Republicans and many have made a pledge not to raise taxes. Breaking such a pledge will likely be used against them when they return home for reelection during the next election cycle.