Internet Tax

Open Email to Sen. Cornyn:

Dear Sen. Cornyn,
    Your form email below apparently refers to a message I sent you on April 24. The last line of my previous message was, "We do not want increased revenue to any branches of government, which would tend to increase the size and power of those government branches".
    Since then, the Senate passed the Marketplace Fairness Act (S. 743) on May 6, 2013, which would grant states the authority to compel certain out-of-state vendors to collect taxes on sales made to their residents.
    You said that you voted against S.743 for several reasons, none of which include reducing revenues to various branches of government with the objective of decreasing their size and power. In other words, we seem to be accidentally on the same wavelength.
    The dangerous part of this Senate vote on the Internet sales tax is a clear indication that in spite of various commitments by individual members to reduce the size of government, the group as a whole continues with its high spending, large government philosophy of the past 50 years.
    S.743 has passed the Senate. We can only hope that the House will have more sense. If they do not, you can be sure that Pres. Obama will sign the measure and we will be continuing on our rampant road to overall government expansion through increased taxation to the people.   

 

 

 -----Original Message-----
From: SenateWebmail@cornyn.senate.gov [mailto:SenateWebmail@cornyn.senate.gov]
Sent: Thursday, May 16, 2013 10:40 AM
To: asucsy@suddenlink.net
Subject: Thank You For Contacting My Office

Dear Dr. Sucsy:   Thank you for contacting me regarding Internet commerce and state and local taxes.  I appreciate having the benefit of your comments on these matters.   According to the United States Census Bureau, $3.9 trillion worth of retail and wholesale transactions took place on the Internet in 2011.  It is important that the federal government does not over-regulate or over-tax e-commerce, especially at a time when unemployment remains high and small businesses are struggling to create jobs.  Congress must ensure that taxpayers are not subjected to multiple taxes and needless complexity.   However, since the passage of the Internet Tax Freedom Act Amendments Act of 2007 (P.L. 110-108), which established a temporary moratorium on multiple and discriminatory taxes of e-commerce, a number of legislative proposals have been introduced that would affect state and local policies.  Most recently, the Senate passed the Marketplace Fairness Act (S. 743) on May 6, 2013, which would grant states the authority to compel certain out-of-state vendors to collect taxes on sales made to their residents.     I could not support S. 743.  While I understand the view of many Texans that there is a need to level the playing field between online retailers and brick and mortar retailers, I have concerns regarding the costs, complexity, and administrative burdens this legislation would impose on small businesses and its overall impact on the economy and job creation.  At a time when millions of Americans remain out of work, small businesses should be spending their time and resources creating jobs, not cutting through miles of burdensome red tape.  Congress should focus on enacting low-tax, commonsense policies that promote economic growth, entrepreneurship, and private-sector job creation.   In addition, S. 743 raises fundamental constitutional questions related to federalism and state sovereignty by allowing states to collect taxes from out-of-state vendors.  These issues deserve careful consideration.  As a result, I am concerned that the Senate Finance Committee, which has jurisdiction over this matter, was not allowed to hold a full hearing and debate on this legislation.  Instead, the Majority Leader rushed the bill through the Senate without a full and complete debate and amendment process.  For these reasons, I voted against allowing S. 743 to bypass normal Senate procedure, and I could not support passage of this legislation.   I am honored to represent Texas in the United States Senate, and you may be certain that I will keep your views in mind as Congress considers legislation affecting state and local tax policies during the 113th Congress.  Thank you for taking the time to contact me.   Sincerely, JOHN CORNYN United States Senator     517 Hart Senate Office Building Washington, DC 20510 Tel: (202) 224-2934 Fax: (202) 228-2856 http://www.cornyn.senate.gov   Please sign up for my monthly newsletter at http://www.cornyn.senate.gov/newsletter.   PLEASE NOTE: Due to the nature of electronic communication, if you did not receive this e-mail directly from my office, I cannot guarantee that the text has not been altered.  If you have questions about the validity of this message, or would like to respond to this message, please use the web form available at my website, http://www.cornyn.senate.gov/contact.