Montana Senator Walsh leads fight against online sales tax legislation

Senator Demands Reid and McConnell focus on policies that grow economy instead of penalizing Montana businesses

Senator John Walsh said today that the Senate should consider legislation that focuses on economic growth and job creation – not new taxes that have negative impacts on Montana businesses.

In a letter to Majority Leader Harry Reid and Minority Leader Mitch McConnell, Walsh opposed consideration of the "Marketplace Fairness Act" because of the negative impact an internet sales tax would have on businesses.

"I have heard from local businesses all across Montana about how the Marketplace Fairness Act would adversely affect their bottom line," Walsh said. "It is simply unacceptable to force additional costs on Montana businesses and I will work against these misguided efforts."

Walsh insisted that the Senate should focus on policies that grow the economy and create jobs like his American Jobs for American Infrastructure Act, rather than creating new taxes for small businesses and consumers.

The Marketplace Fairness Act would require businesses to enact a sales tax on the products they sell online.

Montana is one of five states that currently do not enforce a sales tax on businesses and consumers. In 1994 voters rejected a ballot initiative to establish a sales tax in Montana.

Walsh’s letter to Reid and McConnell is below:

Dear Majority Leader Reid and Minority Leader McConnell:

I write today to express my opposition to the so-called "Marketplace Fairness Act." I urge you not to include this bill in any future legislative vehicle, including a bill to provide funding for the Highway Trust Fund. The Marketplace Fairness Act would place increased bureaucratic burdens on small businesses at a time when we should be encouraging economic development and growth.

I have heard from local businesses all across Montana about how the Marketplace Fairness Act would adversely affect their bottom line. It simply would not be fair to force these businesses to accept additional costs, such as hiring lawyers and accountants, in order to take on the responsibility of collecting taxes for other states. This bill would also expose businesses to costly audits from other states.

We should be focused on policies that grow the economy and create jobs, not creating new burdens on interstate commerce. That is why I have sponsored the American Jobs for American Infrastructure Act that will shore up the Highway Trust Fund for at least four years and provide transportation planners and contractors the long-term certainty that they need. The bill will also fund critical water and energy infrastructure.

I look forward to continuing to work with you on responsible legislation that will encourage growth and economic recovery for local communities. The Marketplace Fairness Act and other legislation that creates new burdens on small businesses should not be part of the legislative agenda. Thank you for your attention to this matter.

Sincerely,

John E. Walsh