Statement on No Regulation Without Representation Act of 2017

Statement of Steve DelBianco, Executive Director, NetChoice:

Today, the House Judiciary Committee will hold a hearing for HR 2887, the No Regulation Without Representation Act of 2017, introduced by Congressman Jim Sensenbrenner (R-WI) and House Judiciary Committee Chairman Bob Goodlatte (R-VA).

HR 2887 is needed to protect online businesses from a national onslaught of state sales tax regulations and obligations that defy the U.S. Constitution. Our nation’s entrepreneurs are enduring unnecessary and harmful business operating costs that are killing jobs and hurting consumers.

The Supreme Court precedent is clear that no state can impose sales tax collection regulation on out-of-state businesses. However, Massachusetts went so far as to claim that out-of-state websites create a “physical presence” when viewed by state consumers.  Moreover, some states are now forcing online retailers to report to the state on private and often sensitive online purchases by state residents.

Small businesses are being forced to wage multiple legal challenge against these illegal and unconstitutional moves by states.   But they need help from Congress to ensure that we don’t kill the next Amazon or Facebook or eBay before it even gets started.

Rep. Sensenbrenner’s common-sense bill would hit the pause button on the state chaos campaign, and would allow Congress to consider a national solution to the remote sales tax issue.

States should not be allowed to regulate businesses beyond their borders. Congress has to exercise its constitutional authority and step-in to stop this madness.