President Trump Tweet Supports Internet Sales Tax

President Trump took a shot at Amazon CEO Jeff Bezos this morning, and may have struck a cord on a key issue impacting NAED members in the process.

In a Twitter post, the president said “The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!”

NAED, along with dozens of national and local trade associations, has been in support of the Marketplace Fairness Act and the Remote Transactions Parity Act for years. The acts would allow states to collect sales tax on items bought over the Internet, creating a tax structure similar to transactions that happen in brick and mortar locations.

Alex Ayers, Executive Director of the Family Business Coalition, told tED magazine that President Trump does not have full support of the Republican Party on this. “The largest question remains Chairman Goodlatte—he has a different idea on how cross-border sales taxes should be collected compared with Marketplace Fairness Act legislation, and as chairman of the committee of jurisdiction he has the power to hold it until he agrees with it.”

Past bills have stalled in the House Judiciary Committee, which is chaired by Congressman Robert Goodlatte of Virginia. Just two years ago, the Marketplace Fairness Coalition released a statement on the need to create the tax.

“Restoring the rights of states to enforce their tax laws and closing an antiquated loophole that gives online businesses a government-sponsored tax advantage over Main Street businesses is one of the most important issues for states and small businesses alike. We appreciate that many Members of the House, as well as expert witnesses who testified at today's hearing, recognize the seriousness of this issue but it's disappointing there still isn't a bill before the Committee to publicly debate,” the Marketplace Fairness Coalition said. “Failure to find a workable solution undermines both the local business community and the governors and state lawmakers across the country who are balancing their books, funding badly needed infrastructure products, and, in many cases, trying to cut taxes.”

Also, tED magazine reported in March of this year that Amazon started collecting state sales tax on all transactions beginning on April 1. Since 2012, Amazon has been a supporter of the Marketplace Fairness Act and the Remote Transactions Parity Act.