mix one part Marketplace Fairness Act and Internet Tax Freedom Act

Marketplace Fairness Act

November is lame duck season

Senate Majority Leader Harry Reid (D-Nev.) has placed passage of the Marketplace Fairness Act (MFA) at the top of his post-election priority list claiming he’ll “do whatever it takes to get that done.”

Apparently getting that legislation passed is high enough of a priority to cause him to bundle it with the Internet Tax Freedom Act (ITFA), a soon-to-expire act which prevents taxes on Internet access. ITFA not only has widespread popular support but lends urgency to the long-languishing MFA.

But getting the legislation passed through the House this year is anything but a done deal. Both Speaker John Boehner (R-Ohio) anlame duck congressd Judiciary Committee Chairman Bob Goodlatte (R-Va.) have said they oppose the MFA.

Rep. Jason Chaffetz (R-Utah) is working on a compromise but a spokesperson for Chaffetz said it was too soon to know whether a bill could be ready by year’s end.

“We’re always working to find something that will attract the necessary votes in the House to pass,” Senate Majority Whip Dick Durbin (D-Ill.) said in September. Durbin is one of the bill’s top supporters, along with Sens. Lamar Alexander (R-Tenn.) and Mike Enzi (R-Wyo.).

Jason Brewer, of the Retail Industry Leaders Association, a supporter, said that pairing the two tax bills allowed retail groups to make the case that their measure wasn’t an “Internet tax. “For every member that is saying, ‘Let’s get ITFA done,’ there’s another member saying, ‘Let’s get both done,’ ” Brewer said.

Reid faces opposition even from within his own party. Senate Finance Committee Chairman Ron Wyden (D-Ore.) warned his colleagues that anyone trying to combine the two bills was “holding the Internet economy hostage.” “Anyone who votes for passing Marketplace Fairness Act alongside ITFA is voting to repeal the Internet Tax Freedom Act,” Wyden said.

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One comment

  • B.J. Pritchett says:
    Avatar for Chuck

    Apparently, Mr. Reid has never had to implement taxes imposed by his legislation. He doesn’t understand all the (devils in the) details. Does he know that some states are origin based and some states are destination based and that a transaction could under MFA be taxed twice because MFA does not contain the language to source the transaction properly under each taxing state’s laws? There are just too many variables that have not been streamlined to meet each state’s taxing definition. Reid should have opposition to this proposal (as stated in your article).

    IF MFA cannot pass on its own merits, why muck up ITFA for the rest of the world?

    ITFA needs to be passed all on its own no muss no fuss!

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