ICYMI: MFA "Punishes Vendors"
The National Center for Policy Analysis this week released a new paper, "The Marketplace Fairness Act: Tilting the Playing Field," summarizing many of the concerns WE R HERE and others have about the Marketplace Fairness Act, and the arguments made by supporters of the bill. While we encourage you to read the whole study, we wanted to highlight a few noteworthy points for you:
Overstated Tax Revenues:
- "[I]f [a 2009 study by Donald Bruce] assumes purchasers are at 0 percent compliance and go to 100 percent, it overstates the amount of potential tax revenue."
- "[T]he [Marketplace Fairness] Act itself implies that there is a significant compliance burden, simply because it exempts small businesses with revenues under $1 million. Moreover, the MFA does not provide all the protections for vendors that apply under the Streamlined Sales and Use Tax Agreement."
- "The MFA essentially punishes vendors by requiring them to collect taxes, which is government’s job. States with use tax laws on the books should use their own taxing authorities to enforce compliance rather than burden the private sector with the task."
You can find the study in its entirety here.