Closing the Online Sales-Tax Loophole

Statement

In November, I joined Senators Mike Enzi of Wyoming and Dick Durbin of Illinois in introducing the Marketplace Fairness Act to give states the ability to close the online sales-tax loophole. Today, out-of-state sellers don't collect, and purchasers don't pay, the state sales tax -- even though they still owe it. This loophole subsidizes out-of-state businesses at the expense of Tennessee businesses and subsidizes some taxpayers at the expense of others. Tennessee is losing hundreds of millions of dollars that could be used to improve services or avoid a state income tax.

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