The National Retail Federation issued the following statement from Senior Vice President David French agreeing on the findings of a new government report that analyzed the impact of the small seller exemption in current online sales tax legislation.
The statements read:
“This objective, non-partisan and peer-reviewed academic analysis and report from the Small Business Administration confirms what local retailers have been saying for decades: the lack of a level playing field between brick-and-mortar stores and their online and remote competitors is blatantly uneven and unfair, and continues to place them at a competitive disadvantage.
“The $24 billion sales tax gap, which is expected to grow with the rise of online shopping, will continue to disadvantage local retailers and employers, threaten Main Street communities and neighborhoods, and put additional policy and political pressure on state and local officials to increase non-sales tax revenue, like property or income taxes, to compensate for the growth in online sales.
“As retailers and merchants prepare for the all-important holiday shopping season, which NRF predicts will reach $602 billion this year, it is time for Congress to address this online tax loophole once and for all. We have made great strides this year with the Senate passage of the Marketplace Fairness Act and the release of Chairman Goodlatte’s Principles on Internet Sales Tax, but more must be done to level the playing field so all retailers can compete fairly and without bias.”
As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities at home and abroad, and the critical role that retail plays in driving innovation. www.nrf.com
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