Sens. Rand Paul (R-Ky.) and Ted Cruz (R-Texas) were among the many anti-tax leaders voicing their concerns about the Marketplace Fairness Act – a.k.a. “the Internet tax” – in front of the Capitol Tuesday morning.
The bill, which grants individual states the authority to make online and catalog retailers collect taxes at the time of a transaction, passed in the Senate last month by a vote of 69 to 27.
“This bill is a mad bill and unfortunately it passed the U.S Senate,” Cruz said during the press conference. “The reason that it passed and it passed with significant margin is because you have a lot of lobbyists in Washington who are supporting this bill…Small businesses don’t have lobbyists in D.C.”
He added that at a time when we desperately need more economic growth, “the worse thing that we could be doing is be putting 23 billion dollars of new taxes on small online retailers, hammering them, hammering jobs…that doesn’t make any sense at all.”
Paul, who has been one of the primarily opponents of the proposed “Internet sales tax,” echoed Cruz’s remarks.
“One of the only things known to really stimulate the economy is to leave more money in the economy,” Paul said. “Proponents of this bill say, ‘Oh, it will raise 23 billion dollars in taxes’, but that’s 23 billion dollars the economy will no longer have.”
The group argued that the “Internet sales tax” would damage small businesses – and ultimately the national economy – should it pass in the House. They also highlighted the advantages that the act gives large corporations, essentially preventing newer and smaller businesses from opening.
“The greatest challenge facing the United States is that we do not have sufficient growth of the economy. If this Marketplace Fairness Act is enacted, it is anti-growth, anti-business, anti-jobs and anti-opportunity in this country and that’s why it should be defeated,” Gilmore said.