Katie Press Conference

It is essential to small business owners throughout the country that an Internet sales tax not become law.

Senator-elect Steve Daines of Montana has detailed the ramifications of an Internet sales tax for hundreds of thousands of American small businesses. As a Representative of a no sales tax state, Congressman Daines is familiar with the economic benefits of a free market. Under MFA, online retailers would have to “contend with the constantly fluctuating sales tax codes of 45 states and 9,600 local jurisdictions.” The compliance and accounting costs make the regulatory burden of MFA a smothering force on innovation and economic growth.

With a projected increase in the average online shopper’s tax bill of $360 a year, this proposal would slow the economy and hurt struggling small businesses. Congress must remain firm in their opposition to an Internet sales tax as we head towards the commencement of the 114th Congress.

However, there remains a lame-duck threat to true Internet freedom: the expiration of the Internet tax moratorium on Wednesday the 10th at midnight. If the Internet tax moratorium is not expanded by Wednesday at midnight, state and local governments will start taxing access to the Internet. This regulation of the Internet slows innovation and hurts low income Internet users.

While MFA’s temporary defeat is a short term win for Internet freedom, the expiration of Internet access freedom remains a concern. Action must be taken by Congress in order to prevent an Internet usage tax.