Ms. CHU. Mr. Speaker, I rise today in support of the Marketplace Fairness Act.
States and cities have seen a dramatic decline of sales tax revenue due to the increase in online sales, where a sales tax that is already owed is not collected. This means that potholes go unfilled and streets go unpaved, and it is unfair to the brick-and-mortar stores that do collect it, but this can be changed.
When my home State of California changed the law to require the collection of this already owed online sales tax, it brought in $260 million in its first year. The potential for future growth is even greater, with $1 billion more that could be collected in California alone.
Last night, a bipartisan group of Senators introduced a bill that combines the Marketplace Fairness Act, which would require this collection, with a 10-year extension of the Internet Tax Freedom Act.
With this act, we can stop the closing of businesses on Main Street and have a fighting chance to keep the jobs they provide our communities.
We cannot wait to pass legislation like the Marketplace Fairness Act.