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MFC Calls On Congress To Pass E-Fairness Legislation Now

March 13, 2018

Washington, D.C. – The Marketplace Fairness Coalition (MFC) released the following statement today urging Congress to act immediately and pass federal E-Fairness legislation:

"Congress should be the one to pass the E-Fairness legislation that merchants have supported for more than a decade to level the playing field for brick-and-mortar businesses. Due to the online sales tax loophole, states across the nation will lose more than $33.9 billion in sales tax revenue this year alone.  Federal legislation can provide the simplifications and protections that would benefit sellers of all sizes. That's why President Trump and a majority of members of Congress on both sides of the aisle support federal E-Fairness legislation. Congress has an opportunity to act now to address this issue, and we encourage you to do so."

Businesses across the country are calling for an E-Fairness solution. The International Council of Shopping Centers (ICSC) underscored the damage the online sales tax loophole causes brick-and-mortar stores, "First, the loss of physical stores, many of which are integral to the social fabric of their communities, increases unemployment and creates a sense of dislocation among community residents. Second, the decline in the retail sector reduces the value of retail real estate, discourages further development of retail properties, and impedes innovation in the retail sector. Third, the lost revenue from sales, property, and income taxes threatens the ability of state and local governments to provide much-needed public services, including those that benefit online retailers." 

In addition, the National Association of Wholesaler-Distributors (NAW) emphasized wholesaler-distributors with "some form of physical presence in a state are forced to operate at a clear and substantial economic disadvantage vis-à-vis remote internet sellers competing in the same markets. The disadvantage results in lost sales revenue and hampers the ability of locally-present wholesaler-distributors to grow their businesses, invest in the community, and produce in-state employment opportunities."