Internet Taxation Will Help States and Local Retailers

[Commentary] Sen. Jim DeMint's "No Internet Taxation Without Representation" (op-ed, Aug.1) is surprising and disappointing in that it is replete with outdated and inaccurate information.

What Sen. DeMint (R-SC) fails to mention is that in states with a sales tax—five don't have one—tax is already owed by consumers when a purchase is made online. This isn't a new tax. It's erroneous to state that the Marketplace Fairness Act would create "taxation without representation," as retailers don't pay sales tax, they collect it. The in-state customer who makes the purchase and pays the appropriate sales tax has an opportunity every election to render judgment on his state's fiscal direction. Furthermore, because of technology advancements, it is patently disingenuous to suggest that collecting sales tax is a crushing burden for online merchants. Since the 1992 Quill Corp. v. North Dakota decision, our marketplace has changed at a dramatic pace. E-commerce has boomed, and with the technological development of smartphones, iPads and the continuous expansion of the Internet, traditional retailers have had the rug pulled out from under them. With the unlevel playing field created by the sales-tax loophole, brick-and-mortar retailers are unable to compete with the artificial price advantage enjoyed by online merchants. This has created a domino effect in communities throughout the nation as local stores are forced to close and jobs are lost. Federal legislation doesn't mean a national mandate. Rather, it restores the states' right to enforce their tax system of choice in a way that is consistent with our ever-evolving, multichannel marketplace.