The Internet empowers entrepreneurs to find consumers across the country and throughout the world, particularly empowering small and medium-sized businesses.

However, as local, state and the federal government look for ways to close budget gaps and raise revenue, some are seizing on the opportunity to target online sales.  Congress is now debating legislation that would require out-of-state retailers to collect sales and use taxes on purchases made to residents of their states — regardless of physical presence.

CCIA’s View:

CCIA has long opposed such legislation as burdening online vendors with the task of sorting through the policies of thousands of taxing authorities around the country, and serving as revenue collection agencies for each of them.  As innovation and entrepreneurship have always been the drivers of our economic growth, it is counterproductive to add to the administrative burdens of small businesses at the very moment we need them growing and leading our economic recovery.

There will be negative implications on the Internet if the relationship between taxes and physical presence is broken.  E-commerce has enabled businesses to broaden their scope beyond traditional geographical limitations.  Allowing states to impose geographically-based taxation collection requirements on e-commerce businesses would re-impose the very limitations that innovation has enabled them to overcome.  Indeed, since the broader the customer base, the more tax jurisdictions the business would have to collect for, so businesses would be in fact penalized for their success.  Good tax policy should promote and support new innovative business models rather than simply protect the old.

Most Recent Statements&Findings:

CCIA Supports Digital Goods Tax Fairness Act

On May 23, the House Judiciary Committee’s Courts, Commercial and Administrative Law Subcommittee held a hearing on H.R. 1860, the Digital Goods and Services Tax Fairness Act.  The bill would establish a national framework for how state and local taxes apply to digital goods and digital services so as to prevent multiple and discriminatory taxation. …

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CCIA Welcomes Lungren-Lofgren Resolution Against Internet Tax Collection

The Computer & Communications Industry Association (CCIA) applauds Rep. Dan Lungren (R-CA) and lead Democratic co-sponsor Rep. Zoe Lofgren (D-CA) for introducing the “Supporting the Preservation of Internet Entrepreneurs and Small Businesses” resolution (H.Res. 95), a bipartisan resolution opposing any Congressional legislation granting state governments authority to impose new burdensome or unfair tax collecting requirements on small…

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CCIA Supports Resolution Against Internet Tax Collection

The Computer & Communications Industry Association applauds Rep. Paul Hodes, D-N.H., for introducing H. Res. 1570, a resolution with co-sponsors on both sides of the aisle that would stop any new burdensome or unfair tax collecting requirements on small online businesses.  Rep. Hodes is a leader who understands how important the continuing development of e-commerce…

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CCIA Opposes Bill To Expand Internet Tax Collection

Just before the Independence Day weekend, a bill was introduced in the House that would increase the tax collection burden for thousands of small, independent businesses using the Internet to sell their products. The Computer & Communications Industry Association has serious concerns about H.R. 5660, the Main Street Fairness Act sponsored by Rep. William Delahunt,…

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