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DMA Urges Senate Not to Rush into Internet Sales-Tax Bill


Post Date: April 19, 2013
By: Susan Taplinger

April 19, 2013 — The Direct Marketing Association (DMA) has written a letter to the U.S. Senate, urging them not to act hastily in moving on the proposed Marketplace Fairness Act (S. 743).  DMA holds that the Senate should carefully consider all the potential consequences of the new tax-collection regime the bill would create — and urges Members of the Senate to give all sides the opportunity to present their views. 

DMA urges marketers to contact their Senators, asking them to oppose the bill in its current form and to give full consideration through the normal process.  Marketers should visit the “take DMAAction” section of www.DMAAction.org to contact their Senators directly. 

DMA continues to work with the True Simplification of Taxation Coalition (TruST) to educate Senators on the need for mandatory simplifications that the states must complete in order to require remote sellers to collect sales taxes in states where they have no physical presence.

The text of DMA’s letter to the Senate follows below.

 April 18, 2013

The Honorable Harry Reid

Majority Leader

United States Senate

Washington, DC 20510

 

The Honorable Max Baucus

Chairman

Senate Finance Committee

United States Senate

Washington, DC 20510

 

The Honorable Mitch McConnell

Republican Leader

United States Senate

Washington, DC 20510

 

The Honorable Orrin Hatch

Ranking Member

Senate Finance Committee

United States Senate

Washington, DC 20510

 

Dear Majority Leader Reid, Republican Leader McConnell, Chairman Baucus and Ranking Member Hatch:

I am writing to you on behalf of the Direct Marketing Association with concerns about the haste with which the Senate is poised to move on the Marketplace Fairness Act (S. 743) as we understand that a vote may take place on this bill next week. 

The bill, introduced only three days ago, and, in fact, this entire issue, have never had a full vetting and markup in a Senate committee.  The bill makes complex changes to the economy, and the simplistic headlines have subsumed the substance of the issue.  Having had twenty years since the US Supreme Court handed down its decision in Quill vs. North Dakota,  its seems unnecessary to rush into consideration of an Internet Sales Tax law without first going through regular order and giving all stakeholders an opportunity to explain their concerns. 

The protection of interstate commerce is a fundamental responsibility of Congress.  Allowing state interference in interstate commerce should not be done lightly or without full deliberation of the consequences. Therefore, states should be required to enact meaningful simplifications and safeguards as a trade for Congressional permission on requiring remote sellers to become tax collectors for every state. 

We respectfully ask that S. 743 be referred to committee instead of to the floor next week. 

Sincerely,

Jerry Cerasale

Senior Vice President, Government Affairs

 Cc: Members of the US Senate

About Direct Marketing Association (DMA)

 The Direct Marketing Association (www.the-dma.org) is the world’s largest trade association dedicated to advancing and protecting responsible data-driven marketing.  Founded in 1917, DMA represents thousands of companies and nonprofit organizations that use and support data-driven marketing practices and techniques.

In 2012, marketers — commercial and nonprofit — spent $168.5 billion on direct marketing, which accounts for 52.7 percent of all ad expenditures in the United States.  Measured against total US sales, these advertising expenditures generated approximately $2.05 trillion in incremental sales.  In 2012, direct marketing accounted for 8.7 percent of total US gross domestic product and produces1.3 million direct marketing employees in the US.  Their collective sales efforts directly support 7.9 million other jobs, accounting for a total of 9.2 million US jobs.

DMA’s most current initiative is the Data Driven Marketing Institute (DDMI), which advances and protects data-driven marketing by engaging the entire industry in a coordinated campaign to set the record straight about the countless ways that data-driven marketing benefits consumers and fuels the data-driven economy.

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