Washington — The Computer & Communications Industry Association has filed an amicus brief in the Supreme Court of the United States case involving online taxation. When the high court hears South Dakota v. Wayfair, Overstock.com, and Newegg, CCIA urged Justices not to depart from precedent which limits states’ ability to tax outside their borders. CCIA noted in its brief that allowing states “to engage in extraterritorial taxation would burden Internet services, and the startups and small businesses that rely on them.” CCIA pointed out online services already collect taxes in states where they are located and that any changes would risk foreign countries coming up with additional tax collection burdens for U.S. companies as well.
CCIA was founded 45 years ago to promote open markets, open systems and open networks. CCIA has long been concerned about the implications to ecommerce if the relationship between taxation and a business having a physical presence in a state were changed.
The following statement can be attributed to CCIA President & CEO Ed Black:
“Taxation without representation was an injustice that launched this nation, so it is fitting that the Supreme Court will review a case on whether states can expand their ability to tax companies beyond their geographic borders.
“The digital economy has been growing at a rate of 5 percent a year, and changes to online taxation could inhibit investment and innovation in this sector. Penalizing businesses for utilizing technology and innovation is not fairness, but merely a shortsighted targeting of the revenue models of the new, while protecting existing business models at the expense of consumers and growth.”
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