Texas Republican Senator Ted Cruz told PJ Media that the online sales tax bill currently has “momentum” because “giant companies” are united in hurting their competitors.
“I support growth and I support freedom. This kills jobs, it kills economic growth and it hammers the little guy,” said Cruz on Capitol Hill when asked why he opposes the Marketplace Fairness Act, which has passed the Senate.
“The American people need to get engaged. Small-business owners need to get engaged and consumers need to get engaged. If you ask the typical American consumer, do you want $23 billion in new taxes on the Internet? Do you want massive regulatory burdens on small businesses? The American people are overwhelmingly opposed to that.”
According to a Supreme Court ruling, states can only require Internet stores to collect sales taxes if they have a “physical presence in the state.” However, the Marketplace Fairness Act would allow states to collect tax revenue on Internet purchases made through out-of-state online retailers.
Cruz, a member of the Senate Judiciary Committee, said “the problem” right now is the “average consumer” does not have “a voice” in Washington.
“This bill has momentum behind it because you’ve got an alliance of giant companies who are all united in wanting to put barriers of entry to hurt their competitors and that’s not the job of Congress,” Cruz, also a member of the Commerce, Science and Transportation Committee, told PJ Media.
“If you want to compete in the marketplace, go build a better mousetrap. Don’t get elected politicians to hammer your competitors out of business.”
The way to “beat the bill” is for activists and consumers to “speak up,” Cruz added, encouraging them to post on Twitter with the hashtag #NoNetTax.
The bill is now in the House Judiciary Committee. Chairman Bob Goodlatte (R-Va.) predicted last month that the bill won’t pass the lower chamber.
Companies like Amazon support the bill while eBay opposes the measure.
“I strongly believe it creates an unfair tax burden for small online businesses,” eBay CEO John Donahoe said.