Direct Marketing Association Urges Senate To Reject Online Tax Bill

A proposed Internet tax bill will “hinder economic growth and job creation,” the Direct Marketing Association said in a letter to the Senate.

“The bill makes complex changes to the economy while leaving many important questions unanswered -- putting both businesses and consumers in harm’s way,” the DMA argues. “The Senate should hold states accountable before granting them expansive new tax powers and we respectfully request that you vote against any Internet sales tax proposal that does not include reasonable simplification requirements.” If passed, the Marketplace Fairness Act (S. 743) will empower state governments to require out-of-state retailers with at least $1 million in sales revenue to collect tax from consumers. Supporters say the law will help brick-and-mortar stores to compete with online retailers.