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Daines Leads Fight Against Internet Tax

Press Release

Location: Washington, DC

Congressman Steve Daines today led members of the House and Senate and area industry leaders in unified opposition to the so-called "Marketplace Fairness Act"--legislation commonly known as the "internet tax," which forces businesses conducting online sales to collect sales tax on behalf of more than 9,000 cities and states nationwide.

At a press conference held in front of the U.S. Capitol this morning, Daines was joined by Senators Rand Paul (R-KY) and Ted Cruz (R-TX) and Representatives Thomas Massie (R-KY), Ron DeSantis (R-FL) and John Fleming (R-LA). Additional participants included Grover Norquist, President of Americans for Tax Reform; Phil Bond, Executive Director of the WE R HERE Coalition; Mike Needham, Chief Executive Office for Heritage Action for America; Governor Jim Gilmore, President of the Free Congress Foundation; John Tate, President of Campaign for Liberty; and Pete Sepp, Executive Vice President for National Taxpayers Union.

"We're here today because this bill would fundamentally change how online purchases are taxed and would impose yet another burden on small businesses across the country," Daines stated."Let me be clear. The so-called Marketplace Fairness Act is a job-killing tax hike that hurts American small businesses and hurts American consumers. And I promise that I, with the help of all of my colleagues here today, will remain committed and united in the fight against this legislation."

During today's event, Daines also noted recent efforts by Montana Attorney General Tim Fox to coordinate opposition to the internet tax among other states.

"While we represent the private sector, the House, and the Senate, it's important to note that this fight to protect our small businesses and our states' constitutional rights is being fought at all levels," Daines noted."I want to take a moment to applaud Montana's Attorney General Tim Fox for recently spearheading a bipartisan, multi-state coalition with Oregon and Alaska's Attorneys General to formally investigate the constitutionality of the Marketplace Fairness Act and the harms that it would bring to not only small businesses in my home state, Montana, but across the nation.

Daines and other participants noted that the "internet tax" holds a serious threat to the foundation of our nation's tax policy: states must not be allowed to extend their taxation and regulatory authorities beyond their borders. The Marketplace Fairness Act would do away with the "physical presence standard," which dictates that a state can only require a business to collect its sales tax if it is physically present within its boundaries.

Daines also noted the harms that this legislation would bring to small businesses across the United States--both in states with sales tax, as well as those without.

"Because this bill doesn't just hurt no-sales tax states like Montana," Daines concluded."It hurts small businesses in every state, burdening businesses that depend on internet sales with added costs and more paperwork and more regulations."

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