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National Taxpayer Group Opposes Internet Tax Bill in Michigan

WASHINGTON - Americans for Tax Reform (ATR) strongly opposes Michigan Senate Bill 433. The bill proposes that Michigan join a consortium of other states intent upon collecting sales taxes on Internet purchases made across state borders.

Michigan Representatives Bob Gosselin (R-42, Troy County) and Leon Drolet (R-33, Macomb County) have led the fight thus far to defeat SB 433. ATR recommends that all Michigan legislators work to defeat the bill.

Reps. Gosselin and Drolet sit on the House Tax Policy Committee, where hearings have been held on SB 433 but no vote is scheduled yet as of today's date. Rep. Nancy Cassis (R-38, Oakland County), Chair of the Committee, can schedule a vote as soon as Thursday, September 20, when the House goes back into session after the summer recess has concluded.

The other members of the House Tax Committee are:

• Steve Vear (R-58, Branch & Hillsdale Counties o Jennifer Faunce (R-29, Macomb County)
• Mike Kowall (R-44, Oakland County) o Tom Meyer (R-84, Tuscola & Huron Counties)
• Gary A. Newell (R-87, Barry & Ionia Counties) o Randy Richardville (R-56, Monroe County)
• Gary Woronchak (R-15, Wayne County) o Nancy Quarles (D-36, Oakland County)
• Raymon Basham (D-22, Wayne County) o Bob Brown (D-16, Wayne County)
• Derrick Hale (D-14, Wayne County) o Jack Minore (D-49, Genesee County)
• William O'Neil (D-24, Wayne County) o Paul Wojno (D-28, Macomb County)

"I applaud Reps. Gosselin and Drolet for their courage to defend the rights of taxpayers and small business owners in Michigan. SB 433 will force Michigan to enter into an agreement with other states that want to collect taxes on Internet purchases. Internet taxation will stifle the growth of the online marketplace and hinder the ability of small businesses to enter this marketplace as viable competitors. The legislation itself will create an enormous and expensive bureaucracy necessary to handle such a complicated tax system, spanning nearly 7,500 different tax jurisdictions across the county. If the goal is to simplify and level the playing field, why assume that more methods of taxation are needed? Why not work to eliminate the burden of sales taxes for all businesses?" asked Grover Norquist, President of Americans for Tax Reform.