Debate surrounding the Marketplace Fairness Act continues after seven principles concerning the law were released on Wednesday.
The seven principles were introduced by House Judiciary Committee Chairman Bob Goodlatte. The principles include “tech neutrality”, which would have online and physical stores applying the same sales tax. Goodlatte claims that the principles are meant to “provide a starting point for discussion.” States can currently collect sales taxes from online purchases, but residents must tell states about the purchases first. Few residents pay these taxes, which cost states an estimated $23.3. billion in 2012 sales tax revenue. The Marketplace Fairness Act, passed by the Senate in May, is supported by Amazon (AMZN) and Walmart (WMT), reports the Huffington Post.
According to the Huffington Post, Goodlatte’s seven principles include:
- Putting all businesses on equal ground.
- Preventing taxation rates other than what have been approved.
- Keeping the law simple.
- Allowing for tax competition.
- States should have supreme authority.
- Customer’s data should be protected.
- Don’t create new precedents for internet sale taxes.
“The principles issued by Chairman Goodlatte provide a thoughtful framework for discussion on the Internet sales tax issue,” Spencer Bachus, Chairman of the Subcommittee on Regulatory Reform, Commercial and Antitrust Law, told EcommerceBytes.com. ”As chair of the subcommittee with jurisdiction over Internet tax issues, I appreciate that the Chairman is giving it serious consideration.”
The opinions contained in this column are solely those of the writer.
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