Senator
Dianne Feinstein
U.S. Senate
Capital Office Phone:
(202) 224-3841
State Office Phone:
(415) 393-0707
Senator
Barbara Boxer
U.S. Senate
Capital OfficePhone:
(202) 224-3553
State Office Phone:
(510) 286-8537
Representative
Jim Costa
U.S. House of Representatives
Capital Office Phone:
(202) 225-3341
District Office Phone:
(559) 495-1620
RE: Please Protect Small Business
As your constituent, I ask that you oppose the Marketplace Fairness Act (S. 336/H.R.684). As currently written, the bill will hurt small online businesses. Before any changes are made to Internet sales tax policy, more scrutiny is needed to ensure small businesses are treated fairly, that they are encouraged to grow and continue creating jobs for our economy, and that consumers can benefit from the value and selection that healthy competition provides.
A real small business exemption is needed in any Internet sales tax legislation. That’s not the case in the current bill. I support an Internet sales tax exemption for small businesses with less than 50 employees or less than $10 million in annual out-of-state sales. That’s equivalent to the amount of sales generated by a big, national online retailer such as Amazon in only 90 minutes. That’s a reasonable approach to protect jobs and fuel our economy. But so far, proponents of the current bill have refused to consider a fair and reasonable exemption similar to robust small business exemptions already provided by federal legislation on other issues.
Currently, small businesses collect and remit sales taxes for purchases made in states where they have a physical presence. This makes sense because it means that small businesses are paying for the government services they use and they are treated the same as offline small business retailers that only collect in one state.
Under the Marketplace Fairness Act, however, small businesses would have the same tax obligations as multi-billion-dollar retailers who have a physical presence nationally and use government services in many local tax jurisdictions. I am concerned because the bill also gives tax collectors in every state unprecedented authority to threaten out-of-state small businesses with costly audits and unnecessary litigation. Tax collection software does not solve this issue for small businesses, nor does it guard against the significant liability issues small businesses could face.
Small online businesses should not be saddled with new tax burdens. Everyone benefits from Internet-enabled small businesses. Unfortunately, current Internet sales tax legislation will make these businesses less competitive against big national retailers who use government services nationwide and have the resources to collect sales taxes everywhere. I am concerned that this current bill may shut down small online businesses, costing jobs and reducing competition that benefits consumers.
Please speak up and oppose the Marketplace Fairness Act. Make sure any Internet sales tax legislation fairly protects small businesses, the jobs they create and the consumer benefits they provide. Legislation should support small businesses, not put them out of business.
Sincerely,
YOUR NAME
YOUR .COM
YOU DECIDE HOW THEY SHOULD VOTE, GIVE THEM A CALL YOUR DIME WELL THEY ARE ON OUR DIME, QUARTER, and OUR DOLLARS ALREADY !
WE PAY THEM TO REPRESENT US LIKE A GOOD LAWYER IN COURT ONE YOU CAN TALK TO AT LEAST LEAVE A MESSAGE !
CALL THEM THEY DON'T KNOW UNLESS YOU TELL THEM!
THE LETTER I RECEIVED FROM SENATOR FEINSTEIN
Thank you for your expressing your opposition to collecting sales taxes on Internet purchases. I appreciate hearing from you, and I welcome the opportunity to respond.
I am an original cosponsor of the "Marketplace Fairness Act" (S.336), which was introduced by Senator Michael Enzi (R-WY) on February 14, 2013. This bill would allow states to require sellers to remit sales taxes on internet purchases. The legislation includes an exemption for online retailers with gross annual sales in the United States under $1,000,000. The "Marketplace Fairness Act" is awaiting consideration by the Senate Finance Committee.
I understand you have concerns that this legislation would create a new tax on internet purchases. To be clear, this is not the case. Items purchased over the internet are subject to sales taxes in states that levy these taxes, including California. Under current law, it is the responsibility of the buyer to report these purchases and pay the taxes. This system puts brick and mortar businesses, which have to collect sales taxes at the point of sale, at a relative disadvantage in the pricing of their products. This bill would make it easier for states to collect the sales taxes they are already owed on internet purchases. Ultimately, it would be up to states to decide whether to require the collection of these taxes.
Once again, thank you for writing. If you have any further questions or comments, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the nation are available at my website,Feinstein.senate.gov. You can also receive electronic e-mail updates by subscribing to my e-mail list. Click here to sign up. And please visit my YouTube, Facebook and Twitter for more ways to communicate with me.
Thank you for your expressing your opposition to collecting sales taxes on Internet purchases. I appreciate hearing from you, and I welcome the opportunity to respond.
I am an original cosponsor of the "Marketplace Fairness Act" (S.336), which was introduced by Senator Michael Enzi (R-WY) on February 14, 2013. This bill would allow states to require sellers to remit sales taxes on internet purchases. The legislation includes an exemption for online retailers with gross annual sales in the United States under $1,000,000. The "Marketplace Fairness Act" is awaiting consideration by the Senate Finance Committee.
I understand you have concerns that this legislation would create a new tax on internet purchases. To be clear, this is not the case. Items purchased over the internet are subject to sales taxes in states that levy these taxes, including California. Under current law, it is the responsibility of the buyer to report these purchases and pay the taxes. This system puts brick and mortar businesses, which have to collect sales taxes at the point of sale, at a relative disadvantage in the pricing of their products. This bill would make it easier for states to collect the sales taxes they are already owed on internet purchases. Ultimately, it would be up to states to decide whether to require the collection of these taxes.
Once again, thank you for writing. If you have any further questions or comments, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841.
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the nation are available at my website,Feinstein.senate.gov. You can also receive electronic e-mail updates by subscribing to my e-mail list. Click here to sign up. And please visit my YouTube, Facebook and Twitter for more ways to communicate with me.
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