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Center Support's

In the letter reproduced here, the Center for Individual Freedom expressed its ardent support for NET FAIR, the New Economy Tax Fairness Act.




C.e.n.t.e.r ...F.o.r...I.n.d.i.v.i.d.u.a.l... F.r.e.e.d.o.m

.........Jeffrey Mazzella
.........Vice President, Legislative Affairs

May 24, 2001

The Honorable Charles E. Grassley
Chairman, Senate Finance Committee
United States Senate
135 Hart Senate Office Building
Washington, DC 20510





Dear Chairman Grassley:

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.

The Internet has been a driving force for our economy and America’s 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.

The Center 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.



Jeffrey Mazzella
Vice President, Legislative Affairs

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