On behalf of
the Center for Individual Freedom, I am writing to urge you and
every member of the Senate Finance Committee to support S. 664,
the New Economy Tax Fairness Act, or NET FAIR.
In 1992, the
Supreme Court ruled in Quill Corp. v. North Dakota that,
without authorization from Congress, states cannot force merchants
lacking a substantial physical presence or "nexus" in
the state to collect and remit sales tax on purchases made in the
state. Congress grant of such authority would expand the states
taxing jurisdictions beyond their borders, placing substantial burdens
on interstate commerce and remote businesses.
NET FAIR is
a commonsense solution to a complicated issue, as it simply applies
the nexus standards that currently govern catalogue sales to sales
over the Internet. Such clear and uniform nexus standards will reinforce
the constitutional protections afforded to remote vendors under
the Commerce Clause by precluding states from forcing vendors to
collect sales taxes for a state in which they do not have a physical
presence. Moreover, NET FAIR protects remote merchants from being
subjected to multiple taxation and the various rules of the more
than 7,600 taxing jurisdictions nationwide.
has been a driving force for our economy and Americas leadership
position in electronic communications over the past decade. Congress
passage of NET FAIR will serve to solidify that position and ensure
future economic growth while respecting the states authority
to set their own tax policies on commerce within their jurisdictions.
for Individual Freedom is a non-partisan, non-profit organization
with the mission to focus public, legislative and judicial attention
on individual freedoms and individual rights guaranteed by the U.S.
Constitution. As free-market advocates, we are opposed to over-burdensome
state and federal regulations and taxing regimes that will impede
the evolution of electronic commerce.
Vice President, Legislative Affairs