On Monday, Sen. Ted Cruz (R-TX) came out strongly against the Senate’s proposal to force companies to collect state sales tax for sales over the internet. He called it “incomprehensible” that the Senate was considering such a measure. The internet, he said, is a “thriving ecosystem” designed to create new opportunities for businesses to “compete in the national marketplace in ways that would have been impossible 15 years ago, and it empowers consumer choice.”
Sen. Cruz added that “tax-hungry politicians view the Internet as yet another source of revenue to bail out their big-spending governments. This misleading titled ‘Marketplace Fairness Act’ is a job-killing tax hike, plain and simple. It is, in effect, a national Internet sales tax, which would hammer the little guy and benefit giant corporations.”
Business would have to know each and every local and state tax in order to implement the new bill. “Raising the tax burden on small businesses in one of the still-thriving sectors of our economy doesn’t make sense,” Cruz wrote.
Some Republicans, including Rep. Paul Ryan (R-WI), have expressed support for an internet sales tax.