Beware of Fiscal Potholes in Congress's Latest "Main Street Fairness Act," Taxpayer Group Warns

WASHINGTON, July 29, 2011 /PRNewswire-USNewswire/ -- Contrary toits name, legislation introduced today called the "Main StreetFairness Act" contains many unfair provisions that will adverselyimpact taxpaying consumers and business, according to the 362,000-member National Taxpayers Union (NTU). The bill, authored by RichardDurbin (D-IL) in the Senate and John Conyers (D-MI) in the House,would give the federal government's blessing to an interstate taxcollection scheme known as the Streamlined Sales and Use TaxAgreement (SSUTA). NTU Executive Vice President Pete Sepp offeredthe following comments on the proposal:

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Despite its smooth title, the Main Street Fairness Act is riddledwith fiscal potholes that would make the going decidedly bumpy fortaxpayers. State revenue officials have long sought the requiredfederal authority to tax beyond their borders, but with each passingyear their arguments for SSUTA have become less credible.

We were told that 'tax-free shopping' was costing states enormoussums, even though businesses and customers involved in onlinetransactions pay many levies such as property, profit, payroll, andfuel taxes. Additionally, many Internet purchases are alreadysubjected to sales taxes. We were told that compliance with SSUTAwould be a snap for businesses thanks to recordkeeping software,when in reality the cost and effort involved in complying with up to15,000 jurisdictions' tax laws would be far from trivial. The bill'svague and ineffectual mention of 'small sellers' provides no promiseof relief from these problems.

We were told that this legislation is necessary to level theplaying field, even though the Internet has been small business'best friend. Because Main Street has an on-ramp to the InformationSuperhighway, mom-and-pop stores as well as sole proprietors canmarket their goods and services to the whole country or the world ifthey choose. Likewise, going online has allowed small firms tomanage their overhead - from buying paper clips to retainingaccountants - more efficiently than ever before.

Giving governments even more sweeping powers to tax won't restoreany part of the private sector to health, especially the smallbusinesses Americans are counting on to lead a resurgence in job andincome growth. Furthermore, taxpayers are tired of being leftholding the mop for state governments that refuse to clean up thewasteful spending habits causing so many of their current budgetmesses.

If Congress truly wants to be fair to Main Street, lawmakersshould instead work on passing legislation like H. Res. 95, whichaffirms that Congress won't give states 'the authority to impose anynew burdensome or unfair tax collecting requirements on small onlinebusinesses.' In doing so, they'll be paving the way to a muchbrighter future for our economy.

NTU is a nonpartisan, nonprofit citizen organization founded in1969 to work for lower taxes, smaller government, and economicfreedom at all levels. The group was among the first to support thefederal Internet Access Tax Moratorium and oppose the states'Streamlined Sales and Use Tax Agreement. Note: For more on NTU'swork in this and other public policy areas, visit www.ntu.org.

SOURCE National Taxpayers Union