Tax Internet Sales for Fairness, Federalism

[Commentary] Your Christmas Eve story “Malls Reel as Web Roars” reports broad declines in traffic at physical stores amid double-digit gains by online merchants. There are many reasons, but a leading cause is the fact that many online merchants don’t have to collect sales tax. On Dec. 28, however, your editorial “The Internet Tax Hostage” unfairly takes Sen Lamar Alexander (R-TN) to task for fighting to fix the discrimination in federal policy between local retailers and their online competitors.

Sen Alexander is defending a core principle of federalism: Congress, either through action or inaction (as is true in this case), should not be allowed to interfere in the business of a state. Furthermore, he is defending one of the hallmarks of conservative tax principles—that the best tax is one that is applied fairly across the broadest possible base.

[Shay is President and CEO of the National Retail Federation]