Norquist Blasts Efforts to Tax More Online Sales | NTK Network Norquist Blasts Efforts to Tax More Online Sales

Norquist Blasts Efforts to Tax More Online Sales

The head of Americans for Tax Reform calls latest effort to tax online sales a European exportation to the United States.

By NTK Staff | 11.30.2017 @8:38am
Norquist Blasts Efforts to Tax More Online Sales

In an exclusive interview with NTK Network, Grover Norquist, the head of Americans for Tax Reform, took aim at state efforts to expand online sales taxes to all companies regardless of their physical location.

For Norquist, these efforts are tantamount to “taxation without representation” that would empower state tax collectors to go after companies that would not have a vote in their state and which could possibly lead to abuse:

“I think it’s very important that the United States stand up against efforts by other countries to export their taxes to us. And just as it’s important for all 50 states to say you know…Alabama is not allowed to impose taxes on based in Utah, right, because they don’t provide any services to a company in Utah.

“So only insisting that companies raise taxes on economic activity inside their state, which means everybody who you tax can vote against you. It’s no good to have taxes on people who can’t vote against you because then it gets abused.”

In the interview, Norquist called the various state capital efforts nothing less than an effort to export European-style taxes to the United States:

“So yes there is a problem with Europeans exporting their regulations their labor law, their taxes to be fair to the rest of the world the United States tried to pull that stunt from time to time, and we should also refrain from ever doing that.”

Americans for Tax Reform has in the past labeled such efforts a “revenue grab” by states that “carr[y] a litany of issues”:

It subjects a business of one state to the tax laws of another state- one they have no political representation in. What happened to no taxation without representation?

It shifts the tax burden onto businesses as they would now have to collect a sales tax in these types of transactions and report and file to dozens of other states. This all results in taking even more money out of your pocket.

Worst of all, it discourages tax competition and business incentives amongst the states, and instead encourages higher tax rates.

Asked about the correlation between the European Union’s moves to tax U.S. companies and the Marketplace Fairness Act, Norquist was clear in saying that “they are both examples of politicians trying to tax people who can’t vote against them.”

In a November 2016 note, the Competitive Enterprise Institute (CEI) wrote that the Marketplace Fairness Act “would empower states to collect sales from companies based in other states,” thus imposing “high compliance costs on businesses” and subjecting “businesses to audits by out-of-state tax authorities.”

Citizens Against Government Waste wrote that this federal effort “would force businesses performing commerce online to become tax collectors for the more than 9,900 state and local tax jurisdictions across the nation.”

NTK has previously reported that efforts to expand online sales taxes have been roundly rejected by Americans in public opinion surveys.

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