May 6, 2014 CONGRESSIONAL RECORD — SENATE S2707 ENERGY SAVINGS AND INDUS- agree that recognizing the power of long recognized the injustice that is TRIAL COMPETITIVENESS ACT State legislators to make these deci- being done to Main Street businesses OF 2014—MOTION TO PROCEED— sions for themselves is consistent with and the problems we have in terms of Continued the 10th amendment and our constitu- States rights and making sure we The PRESIDING OFFICER. The Sen- tional framework. maintain a system that recognizes the ator from Tennessee. In our State of Tennessee, the Mar- value of States rights and the value of Mr. ALEXANDER. Mr. President, on ketplace Fairness Act is an insurance a State prerogative so they can make behalf of the distinguished Senator policy against a State income tax. We their own taxing decisions without in- from Illinois, Mr. DURBIN, I ask unani- don’t have a State income tax and we terference from the U.S. Senate or any- mous consent that he and I and the don’t want a State income tax. one in the Federal Government. The House of Representatives has not As Senator ALEXANDER has ex- Senator from Wyoming, Mr. ENZI, and the Senator from North Dakota, Ms. yet acted on this bill. The bill that was plained, when I first came to this body, passed a year ago today by the Senate Senator DURBIN suggested to his staff HEITKAMP, be permitted to engage in a colloquy. was an overwhelming bipartisan vote. that they try to find out where I would The PRESIDING OFFICER. Without We are hopeful that the House will be on this issue because my prede- objection, it is so ordered. soon either enact our bill, which we cessor, Senator Dorgan, had been very have sent to them, or send us their active with this coalition of leaders on MARKETPLACE FAIRNESS ACT version of the bill so we can confer and addressing this problem, and his staff Mr. ALEXANDER. Mr. President, send a result to the President of the suggested that he might want to read this colloquy is for the purpose of United States. the caption on the Quill case since marking an important day in the Sen- State and local governments have there was the name ‘‘HEIDI HEITKAMP’’ ate because it was on this day 1 year been waiting on Congress to solve this in that caption. ago that the Senate overwhelmingly problem for more than 20 years—since The reality is that back in the late passed the Marketplace Fairness Act. 1992 when the Supreme Court said Con- 1980s and early 1990s, we saw this phe- We did this by an overwhelmingly bi- gress has the ultimate power to resolve nomenon of increased catalog sales. I partisan vote. Sixty-nine Senators, in- the issue. Now is the time to act on am not talking about companies such cluding about half of our Republican this legislation. We are ready to work as Sears that had a physical presence caucus, 21 Republicans, supported an with the House to enact that legisla- in the community and could thereby 11-page bill—a rarity in this body—that tion this year. collect sales taxes but more and more is about just two words, and the words In conclusion, I will read the com- boutique types of catalogs. There was are ‘‘States rights.’’ ments of Al Cardenas, chairman of the more and more competition coming The Marketplace Fairness Act, sim- American Conservative Union and from catalogs. ply described, gives States the right to former chairman of the Florida Repub- I had more and more Main Street decide for themselves whether to col- lican Party. When talking about the businesses coming to me as the tax lect or not collect State sales taxes Marketplace Fairness Act, Mr. commissioner asking: How is this fair? that are already owed. This ability to Cardenas said, How is it fair that I started my little collect taxes that are already owed When it comes to state sales tax, it is time business—whether it was a wallpaper would give States the option to reduce to address the area where federally man- business or a fabric business, whatever existing taxes or to avoid a new tax or dated prejudice is most egregious—the policy it was—and people come to my store to pay for services without raising towards Internet sales, the decades-old in- and look at my sample books that I ac- taxes. equity between online and in-person sales as tually have to pay for, test out the The Marketplace Fairness Act closes outdated and unfair. quality of the fabric, take a lot num- a tax loophole that prefers some busi- Again, that was Al Cardenas, chair- ber, and leave and order it from the nesses over other businesses and some man of the American Conservative catalog? taxpayers over other taxpayers. Out-of- Union, speaking in support of the Mar- That was a pretty horrible thing to State businesses are being subsidized ketplace Fairness Act. happen to Main Street businesses back because they don’t have to collect sales I am pleased that of the four Sen- in the late 1980s. taxes—taxes that are owed—and local ators who will be on the floor during Can you imagine walking into a Main businesses do. As a result, some tax- this colloquy, two are already here. I Street business now and not only get- payers are being subsidized because see the Senator from North Dakota, ting advice and information on how the some pay sales taxes and others do not and I see the Senator from Wyoming. If product operates and what the even though they may owe the taxes. it is all right with the Senator from warrantees are—not to mention all the That is not right, and it is not fair. Wyoming, I will defer to the Senator training these Main Street businesses This legislation, which passed the Sen- from North Dakota. While the Senator have given their employees—but then ate 1 year ago, gives States the option may be a little modest about this—I taking a snapshot of a barcode so you to decide whether to change that. hope she is not—she actually started it can order it on the Internet right there One of the best ways to lower State all. She has a better view of the Mar- in the store? I can only imagine how taxes is for the Federal Government to ketplace Fairness Act than just about discouraging this is for Main Street allow States to collect State sales anyone because of her service in the businesses. It is unfair to Main Street taxes from everyone who owes the tax State government of North Dakota. businesses when they are asked to sup- and not just from some of the people She has an ability to explain in plain port their communities, such as put- who owe the tax. and simple language why the fair and ting the ad in the little high school We have an honor roll of conserv- right thing to do is to recognize the newspaper or contributing to a football atives who do not think States ought rights of States to make these deci- billboard or the local fire department to have to play ‘‘Mother May I?’’ with sions for themselves. Her ability to do so they can serve their communities. the Federal Government on this ques- that has been a crucial part of our de- If you think of all the things Main tion. For example, Al Cardenas, chair- bate and is one of the reasons why we Street businesses do, they are not just man of the American Conservative had such overwhelming bipartisan sup- involved in retail, they are involved in Union; Art Laffer, President Reagan’s port in the Senate. communities. Yet those Main Street favorite economist; Charles The PRESIDING OFFICER. The Sen- businesses are not asking for an unfair Krauthammer; Representative PAUL ator from North Dakota. advantage; they are asking for fairness RYAN; Governor Mike Pence, a former Ms. HEITKAMP. Mr. President, first and equity. They are asking that when Member of the House of Representa- I want to say what an honor it has been sales tax rates have gone up from 8 per- tives; Governor Chris Christie; former for me to participate in any amount of cent to 9 percent because the base Governor Jeb Bush; former Governor leadership on this issue here on the dwindles—you have to raise the rate in Mitch Daniels; and the late William F. floor of the Senate with such incredible order to collect the same amount of Buckley, not to mention Governor Bill leaders as Senator ALEXANDER, Senator money—they are being basically taxed Haslam of the State of Tennessee, ENZI, and Senator DURBIN, who have out of the marketplace through this

VerDate Mar 15 2010 03:12 May 07, 2014 Jkt 039060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G06MY6.058 S06MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2708 CONGRESSIONAL RECORD — SENATE May 6, 2014 unfair advantage that remote sellers dits and millions of tax rates. The just a moment I will yield the leader- have against them by not having the streamlined process has proven over ship of this colloquy to the assistant obligation to collect a tax that is hon- and over that this is not higher math. Democratic leader, but I wish to say a estly already owed. We can get this done. word about the next Senator speaking I want to reiterate a couple of points I have a story from the time we did and about Senator DURBIN as well. Senator ALEXANDER was making be- the original Quill case. It got a lot of Senator MIKE ENZI is the real pioneer cause I think it is so important. One of national attention, and there was a lot on the Marketplace Fairness Act. He the arguments we hear consistently of discussion about this. I had a re- knows what he is talking about. He is about marketplace fairness is that it is porter from the Omaha World Herald a shoestore owner from Wyoming. He a Federal imposition of a tax. Nothing call me. He said he had just called a knows what it is like for someone to could be further from the truth. This is major retailer to order some new come in and try on a pair of shoes and a tax that is already owed. This is a tax shirts, and the retailer he was talking then go home and order them on the that is owed to the States. It is owed to had been very active in opposing the Internet and disadvantage a smalltown by the people who make these pur- Quill case and very active in opposing owner of a shoestore as compared with chases—a sales and use tax. We are what we were trying to do. One of their an out-of-State business. He has dili- doing nothing more than telling every arguments was that they could not pos- gently and systematically lead this State: If you want to pursue Main sibly know the tax rate on that shirt in fight the whole time, and it was due to Street fairness, you have a path for- his jurisdiction. When he ordered his that diligence that the Senate had this ward. shirt, he told the person on the other overwhelming bipartisan achievement If a State doesn’t want to tax or put end of the phone his size, and that per- one year ago today. I thank him for his a collection responsibility on remote son said: You know, maybe you want to leadership. Now I recognize the assistant Demo- sellers, there is nothing in this bill check because last time you ordered, it cratic leader. The truth of the matter that requires them to do that. was a size 15. This is a States rights bill, but it is This reporter said to me: If they can is, the way the Senate works, we would also a fairness to Main Street busi- know my shirt size, they could prob- never have been able to pass this in the nesses bill. It is a bill that would make ably figure out the tax rate of the ju- Senate with such fine fashion if it hadn’t been for the leadership of the sure that the promise of an equitable risdiction I live in. tax system in this country is fulfilled. Think about it. It has only gotten assistant Democratic leader, Senator This bill is a promise that if you play easier. DURBIN of Illinois. I thank him very by the rules and do everything the way One of our major retailers, which is much for his leadership and congratu- you should as a business, no one is adamant about how this would be the late him for it, and I am glad to turn going to get an advantage over you, most horrible and onerous thing, offers the leadership of the colloquy over to and we are going to level the playing a package for $15 if anyone wants to him. The PRESIDING OFFICER. The Sen- field. There is no level playing field collect the tax. ator from Wyoming. The other fallacy here and one of the when somebody has a 10-percent advan- Mr. ENZI. Mr. President, I thank tage over you simply because you actu- myths I want to break is that if I went Senator ALEXANDER for the leadership ally invested in a community, put up to sell my old used lawnmower on the he has shown on this bill. We had a bricks and mortar, trained a sales Internet, I would be subjected to sales much more extensive bill designed, and force, and yet you are going to be the tax. I think it is only natural that this I worked on it for all of the years he disadvantaged one. body doesn’t have a lot of experience in mentioned, which is all the years I When we started this a year ago, we sales taxation. It is not what we do. It have been here, 17 years. We made were joined by all manner of retailers, is what State and local governments some progress every single time it but I will never forget the story of a do. It is what people who had my came up, but there were misconcep- young woman who had a dream. She former job do. However, there is such a tions with it. Senator ALEXANDER sug- loves animals and pets. She trained thing as casual sales. If are you not in gested the solution that is the true so- herself in pet nutrition and opened a the business of being a retailer in every lution for this bill. He changed it to a pet nutrition store in Missouri—it State, you have no collection responsi- very brief States rights bill, not a Fed- might have been Kansas or Missouri bility. It is only retailers, only people eral bill. This doesn’t have any require- because it was in the Kansas City area. who are in the business of retailing and ments for any State, but it has an abil- When you combine State and local only people who have retail sales over ity for States to make up their own taxes where her business is located, the $1 million who would be affected. And mind. tax rate was 9 percent. People would we have streamlined the process. We So I rise today with my colleagues come to her store and explain the ail- have made this possible. It is a small from Illinois, Tennessee, and North Da- ment or condition of their pets, and her thing to ask for us to take an action in kota to recognize the anniversary of very excellent sales staff would tell this body and in the House of Rep- this significant event. One year ago them what product was best for their resentatives to tell Main Street busi- today, with a show of strong bipartisan cat or dog. She knew when they walked nesses that they still matter in the support, the Senate took an important out, they simply ordered it on the marketplace and that we are going to step forward to level the playing field Internet because she could not give listen to them and we are going to do for all retailers that collect sales taxes. them a 10-percent discount. That is everything we can to get them fairness But it is not really about the retailers; what happened in her business. and justice in our tax system. it is about the people who work in We told her that if she had a small So, again, I congratulate the excel- those stores. We are talking about mid- Internet business with $1 million in lent leadership that has come before dle America. They can’t afford to have sales, she would have to collect taxes me on this floor on this issue. I pledge the employees unless they make the too. She said: I would be so happy to once again to do everything we can to sales, and if they just do the sales pitch collect a sales tax if I had $1 million in get this marketplace fairness done in and then it is ordered online, there is Internet sales; that would mean I was this Congress so that our Main Street no revenue the employee brought in, winning. businesses don’t have to wait a day and if there is a prolonged period when If you think about that and the longer for tax justice in this country. there is no revenue, the business mom-and-pop businesses—just a couple I yield the floor. doesn’t need the employee. This bill is of kind of myth-breaking things about The PRESIDING OFFICER. The Sen- about supporting the jobs we have in how this is truly going to affect small ator from Tennessee. our towns. It is about the people who business. This is not going to have any Mr. ALEXANDER. I thank the Sen- are our neighbors who work in the effect at all on any business if we pass ator from North Dakota for her elo- stores and the people who have the the bill we passed that has gross sales quent statement and for her leadership. stores that participate in all of the below $1 million. We have a threshold. I am delighted that she has gone from community events. The other myth is that they are being a caption on a lawsuit to a Sen- As the Senator from North Dakota going to be subjected to millions of au- ator who can help us pass this bill. In said—and she is probably the only one

VerDate Mar 15 2010 02:22 May 07, 2014 Jkt 039060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G06MY6.059 S06MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 6, 2014 CONGRESSIONAL RECORD — SENATE S2709 who has worked on this bill longer in favor of the States, if they wish, to ducted through e-commerce. Congress than I have because she was involved in be able to collect the taxes they have is not forcing States to do anything be- it in State government when she was in imposed on the people who live in their cause the Federal Government should North Dakota. I appreciate her exper- State. So it is a States rights bill. not have the role or authority in tell- tise on this bill. Without some of the In a nutshell, the Marketplace Fair- ing a State how to manage its finances. explanations she was able to give on ness Act is a straightforward, 11-page This bill specifically says that it is up the history of this bill, we wouldn’t bill that brings clarity to a vexing area to the States to enforce the law, and it have been able to get it done. of sales tax collection inequity. Online is 100 percent optional. If the States do Of course, Senator DURBIN and I have sales often go without collection of the act, they are collecting taxes that are been speaking for what seems like sales tax from the point of purchase, already due by the consumers. years now trying to explain how this while the Main Street stores and the I have been working on this sales tax bill works, taking into consideration other brick-and-mortar stores in town fairness or marketplace fairness issue— any concerns people had and trying to typically face established collection or any of the number of names we have overcome those concerns. I couldn’t procedures—no choice, regular reports. had on it through the years as we guess how many hundreds of meetings Wyoming shouldn’t subsidize online gained more and more support and as there have been over trying to get this retailers that operate and sell to people people came to understand more and bill right and to get it fair, all so the in our State. Neither should Illinois or more of what was involved—since 1997. States still have the revenue they need North Dakota or Tennessee or any As a former small business owner, it is to operate without imposing perhaps a other State that has sales tax laws. important to ensure parity for all re- personal income tax. In the case of Vir- But right now, online retailers can tailers by modernizing rules for sales ginia, I think they are not going to offer lower prices than the local busi- tax collection in a way that respects raise the gas tax if this bill passes. So nesses that hire the local people who technology advances and the existing this is a States rights bill. It takes pay the property taxes and that par- practices of large and small and more money to the States, and it is money ticipate in the community events; the traditional businesses, and this bill ac- that is really owed right now. most important thing being those local complishes that. It uniquely balances I did a little checking. Wyoming jobs, simply because they do not have the interests of all businesses and re- started collecting their sales tax in to charge the same sales tax out of spects the existing laws and rights of 1935, and it has been virtually un- State that all our local merchants do. states. changed since that time. There is a Sales taxes are important. They pay The Senator from North Dakota provision in the sales tax law that re- for the roads we drive on. They pay for mentioned there is a $1 million exclu- quires a form, so that if someone buys the schools our kids go to. In Wyo- sion. This is to help out small busi- something from out of State and didn’t ming, with the particularly small nesses, new start-up businesses. If you pay sales and use tax on it, they are towns, they rely on sales tax for the have a start-up business or a small supposed to fill out this form before fire protection and the police protec- business, until you have sold $1 million the end of the month and send the sales tion. When people ask me about the online or through a catalog in a given and use tax with the form to the State sales tax bill, I ask them what county year, you don’t have to comply with government to pay it. they are from and, if it is a small town, this. But once you hit that $1 million One of the surprises I discovered is I say: Check with your fire department mark, you can consider yourself a suc- there is about $11⁄2 million a year col- and see if, without sales tax, they cess. We know that is a very small per- lected in Wyoming that way—people would be able to function. When people centage of the Nation, but an impor- obeying the law. But that is pretty understand it is part of their fire pro- tant part of the total sales of the Na- tough to keep track of and especially if tection and part of their law enforce- tion. I think that is why one year ago, one doesn’t make out-of-State pur- ment protection, they are much more 68 of our Senators joined me in sup- chases every day. So the State, of interested in it and understand why the porting that Marketplace Fairness Act. course, imposed on local retailers the sales tax needs to be collected. I don’t This evening, my lead cosponsors and requirement that they collect sales want to see a situation where other I are again taking a stand in favor of tax, and then people don’t have to fill taxes will have to be raised to cover good public policy for our Nation’s re- out that form. They don’t have to send basic local services because the online tailers while highlighting the need to it in before the end of the month. retailers are not collecting the sales fix some long-standing sales tax sys- So they made it a lot easier by mak- taxes that are owed on the products tem complexities. By balancing this ing the retailers collect the money. Un- they sell. collection inequity, the Marketplace fortunately, they weren’t able to make I remember going into a camera Fairness Act would help States ensure all of the retailers collect the money. store—I try to get into some stores on the viability of the sales tax as a major Because of a court case, they aren’t the weekend and find out what kinds of revenue source for State budgets. We able to do it out of State, and that is decisions they have to make, particu- found in Wyoming that it often con- very important because it is a huge larly decisions that have to do with the stitutes 40 percent of a municipality’s loss of revenue. I think Wyoming actu- Federal Government. I was in the cam- revenue. It also would close opportuni- ally loses about $23 million a year be- era store and the fellow was explaining ties that encourage tax avoidance. cause of purchases over the Internet he had just lost a sale. The sales tax Beyond the walls of Congress, the where no sales tax is paid. rate in that town is 6 percent. A man Marketplace Fairness Act has received On May 6, 2013, this Chamber passed came in to buy a camera, and the cam- broad support. Trade associations, Gov- the Marketplace Fairness Act, and we era was $2,000. But this owner of the ernors, mayors, legislators, and numer- passed it with 69 votes. Some of the store—the only employee of the store— ous businesses have expressed support votes we had were as high as 76 votes. took the time to help him with all of for the legislation. That is very significant around here. the different gadgets and how to oper- But there is work still to be done. Sixty-nine is an incredible number for ate it, and showed him what he needed Our colleagues in the House need to the Senate to produce on any bill. It and how to do it. Then the customer pass the Marketplace Fairness Act. I came from a majority of both sides of took a picture of the bar code and or- know some Members in the other the aisle, which is important. I wish to dered it online because he saved $120. Chamber are working on this issue. A remind my colleagues that this bill is Technically, he still owed $120 to his companion Marketplace Fairness Act about fairness. It is about leveling the State. Whether he filled out one of has been introduced. A hearing has playing field between brick-and-mortar those forms and got it in by the end of been held, and new Members are en- and online companies, and it is about the month, I doubt it, but that is the gaged in the issue. I appreciate those collecting that tax that is already due. law. If a State meets the simplification efforts, and I hope our colleagues in the It is not about raising taxes. It isn’t requirements outlined in the bill, it House will pick up the baton and com- about taxing the Internet, and it isn’t may choose to require collection of plete the effort to guarantee sales tax about taxing Internet access. I think sales taxes that are already due at the fairness. This is the year to finish the we are all opposed to that. But we are point of purchase, including sales con- work. Our States and businesses and

VerDate Mar 15 2010 02:22 May 07, 2014 Jkt 039060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G06MY6.060 S06MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2710 CONGRESSIONAL RECORD — SENATE May 6, 2014 employees in those businesses cannot over and over, about people coming in, State, county or city—existing sales wait longer. Enacting the Marketplace picking out the bicycle, picking out tax. Fairness Act is the right thing to do. the shoes. That is perfect. Let me try The bill provides if you are an Inter- In conclusion, I wish to thank every- them on. Let me get out and ride this. net seller and have less than $1 million one associated with this bill for their Then they say: I will get back to you. worth of sales in a given year—whether hard work and efforts in getting us to And he never sees them again. They it is Grandma Donnelly’s applesauce or this point: our countless supporters turn around and buy the product on the whatever it happens to be—you are not across the country, the 68 Senators Internet. So Chris is running a show- covered by this, but if you have more who joined me to vote for a bill a year room as much as a business. There is than $1 million, yes, you have to col- ago, the 29 cosponsors of the bill for no fairness there. lect the sales tax. their support, and especially my col- When those sales are made on the How can you collect it? First, the leagues who joined me tonight for their Internet, instead of in Chris Koos’s States have to provide you with the unwavering support of this bill. I can’t shop, there is no revenue coming back software so your business does not run thank Senator ALEXANDER, Senator to the city of Normal, IL, or McLean into the expense of how to collect it. HEITKAMP, and Senator DURBIN enough County. That is Chris’s story, but it is You say: I bet that is an elaborate un- for their efforts. I am going to yield the story of thousands, maybe mil- dertaking. You can buy the basic soft- the floor and turn it over to Senator lions, of businesses across America ware to identify the sales tax based on DURBIN who has been a real champion that are losing out now to Internet the consumer’s address for about $15 and one of the best explainers of the competition that is not collecting the for the basic package or maybe a cou- parts of this bill that I have ever run sales tax that is supposed to be paid. ple hundred dollars at the most. into. I really appreciate his efforts and Then I met another man. I will not But in this situation the States are his help. We wouldn’t be this far were disclose the name of his company, but going to help the Internet retailers in it not for his efforts. he is a major retailer in the United developing the software so that when The PRESIDING OFFICER (Mr. DON- States. He came to visit me in my of- someone makes a purchase from Chi- NELLY). The Senator from Illinois. fice in February or March, and he said: cago, IL, or Springfield, IL, whoever is Mr. DURBIN. Mr. President, I wish to I want to tell you, in this last Christ- selling to me on the Internet will then thank my colleague from Wyoming. mas season, which is the biggest time forward that sales tax to the Illinois The most frequently asked question, no of the year for my big-box business, we Department of Revenue. End of story. matter where I appear in Illinois or at had a downturn of 8 percent in sales. It is just that simple. fundraising events, is, Why can’t you Based on our projections, we thought What it does, of course, is level the folks get along in Washington. What is for sure we would have more sales. We playing field for bricks-and-mortar it like to be in a place where everybody had a downturn of 8 percent. He said: I businesses, providing a new source of is at one another’s throats and you lost them to the Internet. Senator, I revenue that should be collected and is can’t accomplish anything? Why can’t can’t stay in business this way. I can’t owed legally in these States to the you do things on a bipartisan basis? run a showroom for people who want to local units of government. What is it like today, and how do you sell things on the Internet. We passed this with enormous sup- compare it to what it was like a few What we are talking about is the port from the retail community. It is years ago? basic collection of sales tax for pur- not surprising. And it just was not the I say to them there are times when chases on the Internet. In my State—in shop owners. It is people who under- we do come together and do something virtually all the States with a sales stand the importance of this. This has important. This is one of those times— tax—there is a legal obligation to pay been said over and over: These bricks- the Marketplace Fairness Act. it. I did not realize that until a few and-mortar shops around America do It was 1 year ago that Senator ENZI years ago. My bookkeeper was doing so much more than just sell a product. led the fight on this. I do not know ex- my family tax return for my wife and They are citizens in the community, actly when he started it, but I was myself. She called and said: Senator, corporate business citizens in the com- happy to join in, in his effort, when do you want to pay the taxes you owe munity. They participate. When the Senator Byron Dorgan retired. I called on Internet purchases? I said: Yes, I local high school is having their grad- Senator ENZI and said: I would like to think I want to pay the taxes I owe. uation program and they want some- step in and help you with this bill. He She said: Well, how much did you buy body to help sponsor it, they will go said: Let’s do it. We brought in LAMAR on the Internet? I said: I will try to put down to the local sporting goods store ALEXANDER, who made some valuable it together. I called her back, gave her for a helping hand on the program. contributions to it. Then along comes a number. She said: Here is the calcula- That happens over and over. Whether it HEIDI HEITKAMP, the new Senator from tion. On your State income tax return is Khoury League or Pop Warner, they North Dakota. Was she ever ready for we will declare that you are going to are in there helping in the commu- this fight—a former sales tax commis- pay X dollars that you owe for Illinois nities. sioner in that State and a former at- sales tax for purchases you made on Isn’t it important and fair that they torney general. She knew this issue in- the Internet. When I said: Is that what be treated fairly here? Sixty-nine side and out. She has been a terrific I am supposed to do? She said: Yes. We Members of the Senate thought so. ally. did it. We have done it every year Democrats and Republicans voted for So there were the four of us. What an since. it—Senator ENZI and I, Senator ALEX- odd grouping: two Republicans, two It turns out only 5 percent of Illinois ANDER and Senator HEITKAMP. We had Democrats from literally all over the taxpayers fill in that line on a State 29 cosponsors of this bill who sat down United States. We worked together, income tax return. I am guessing more and said: Let’s pass it. and 1 year ago today we passed this than 5 percent of taxpayers make We passed it. We sent it to the House basic bill, the marketplace fairness Internet purchases. But folks do not of Representatives, and nothing has bill. The reason for passing it was just know their obligation, they do not fol- happened—nothing. There have been look at the name of it: fairness. low through on their obligation, and some statements made over there, and I think about two people when I the losers are, of course, our State and I hope those statements lead to action, think about this bill. One of them is local units of government. but it is time for them to pick up this the mayor of Normal, IL. His name is This bill says, if Illinois, if Indiana, if bill and this responsibility. If they Chris Koos, a great friend of mine and Wyoming wishes, on a voluntary basis, have a better approach, let’s see it. a terrific mayor. Chris, in addition to they may use this bill to start col- Let’s work on it. Let’s do it on a bipar- being the mayor, runs a shop where he lecting sales tax when it comes to tisan basis. Let’s come up with an ap- sells running shoes and bicycles and Internet sales into their State. It is proach that works. lots of running equipment and stuff. voluntary. The States have to decide to I cannot tell you how many different So I visited his shop, a great little do it. It is not a new tax. This has been businesses have come through my shop. He is a terrific businessperson. said over and over: It is the existing door—from Sears, Roebuck down to He told me a story, which I have heard sales tax wherever it may be—in your just basic mom-and-pop businesses—

VerDate Mar 15 2010 02:22 May 07, 2014 Jkt 039060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G06MY6.061 S06MYPT1 jbell on DSK7SPTVN1PROD with SENATE May 6, 2014 CONGRESSIONAL RECORD — SENATE S2711 and said: What are we going to do Abt is one of the lucky ones—it is a being Main Street retailers, the jobs about the House of Representatives? fine example of a successful American these retailers provide, and the com- They just will not take up this meas- business that has continued to grow munities these businesses support. ure. since opening in 1936 and supports Recently, 1,064 of these businesses I hope they will. They still have time about 1,100 jobs. It also has an online sent a letter urging Chairman Good- to do it. We have waited 1 year. I do presence so it can reach even more cus- latte to move legislation to address the not want to wait much longer. In an tomers. inequity they face every day. Many of election year, it will be almost impos- But there are others that haven’t these businesses were from the chair- sible to do it. been so lucky. man’s home State of Virginia. So I hope we can get this done. It is Soccer Plus in Palatine is an example How long can we expect our small going to mean that local businesses of what happens when it becomes too businesses that are partners in our that are important and the backbone of difficult to compete with online retail- communities to stay in business when our community are going to have the ers that have a 5- to 10-percent price we are tying one hand behind their resources they need because the sales advantage. back? will take place that otherwise are not A year ago when Soccer Plus went I urge them to hold on as long as pos- taking place today, and the local units out of business we lost good-paying sible, but the only real solution is for of government will receive the pro- jobs. And Palatine lost a business that Congress to act. ceeds from the sales tax that is col- was a part of our community. lected. There is nothing we can do now for I strongly urge my colleagues in the One of the major marketplace retail- Soccer Plus. But we can still help thou- House, Chairman GOODLATTE, and oth- ers on the Internet is Amazon. Amazon sands of retailers avoid the same fate ers, to give Main Street retailers a may be the biggest. They support this as Soccer Plus by leveling the playing fighting chance by passing sales tax bill. If you ask them why, they say: We field for Main Street retailers. fairness legislation as soon as possible. don’t want to fight this battle in 50 Since the Senate passed the Market- We welcome the opportunity to work States and all the different cities and place Fairness Act 1 year ago, the in- with our House colleagues so that one counties as to how much sales tax. equity between Main Street retailers day soon we can offer businesses and Let’s just make it uniform across the and online retailers has only increased States a solution to level the playing country. as e-commerce has grown. field for retailers that is simple and That is what the bill does. So Ama- Online retail spending grew 14 per- fair. zon supports this. They are prepared to cent last year alone, to $263.3 billion, In closing, I want to recognize the collect that sales tax and remit it to and is estimated to reach over $300 bil- work Senators ENZI, ALEXANDER, and the States. They do not believe it is an lion in 2014. HEITKAMP have done on this issue. onerous burden that they are going to Unlike 20 years ago, or even 10 years Senator ENZI introduced the first bill face. I hope others will join them. ago, we are no longer talking about a As I have said, 1 year ago today more than a decade ago to level the few online retailers without access to Members of the Senate did something playing field because he understands we don’t do enough. We put aside the the technology necessary to collect firsthand, being a former retailer, how partisan differences that cause so much sales and use taxes. We are talking unfair this is for Main Street retailers. gridlock around here and came to- about hundreds of retailers, many of Last year when we passed the Mar- gether to pass bipartisan legislation— which are large billion-dollar busi- ketplace Fairness Act we came one the Marketplace Fairness Act. On this nesses that have a price advantage over step closer to leveling this playing day last year 69 Members of the Senate small Main Street businesses because field by allowing States to require both agreed that we need to help create jobs, they don’t collect sales and use taxes. brick and mortar retailers and online invest in our communities, and keep It is time we update our laws so they retailers to play by the same set of Main Street alive and able to compete. match our 21st century marketplace. rules. The Marketplace Fairness Act levels Retailers in Illinois can now reach It will ensure that Main Street busi- the playing field for retailers by allow- customers all over the country through nesses, like Abt, have a fighting chance ing States to treat brick-and-mortar this new marketplace and software has and no more stores will have to close retailers the same as remote retailers been developed to calculate sales and because of the current inequity they in the collection of State and local use tax for every jurisdiction in the face. country—yes, all 6,000 of them. sales and use taxes. Again, I urge the House to pass sales It is time to end this idea that tech- Those that benefit under our current tax fairness legislation. I hope that the nology can’t handle calculating sales system—retailers that have a 5- to 10- House Judiciary Committee will move and use taxes. Many retailers are al- percent price advantage over their forward in the coming weeks and offer ready using this technology to collect competitors on Main Street—want to any help I can give. continue the status quo. But it is not and remit these taxes and similar tech- I am not going to take much longer. fair to the thousands of Main Street nology to calculate shipping costs. I think we have covered the subject businesses that have worked hard to This is especially true when talking well, and I thank Senator ENZI from grow their businesses only to become about online retailers who by their Wyoming, as well as Senator HEITKAMP showrooms because of this price advan- very definition use technology to sell from North Dakota, and especially tage. People come in, look around, their products. Senator ALEXANDER from Tennessee for even try on merchandise, and then The internet and e-commerce is no leave and buy the product online. longer a baby in its crib. The baby is kicking this off. This happens many times because all grown up, running at full speed, and I ask unanimous consent to have sales and use taxes are not collected using outdated laws to threaten Main printed in the RECORD this article by when a product is purchased online, so Street businesses. Donnie Eatherly. Donnie is the presi- it seems cheaper. But we all know the The Senate passed a bill to update dent of P&E Distributors in Tennessee. tax is still owed by the customer. In Il- our laws and correct this inequity 1 He is also a member of the Alliance for linois about 5 percent of customers end year ago. The bill was supported by Main Street Fairness Small Business up paying that tax. over 280 business, State, local, and Advisory Board. He wrote this article Abt Electronics, a retailer in Glen- labor organizations, both progressives on May 6 that is entitled: ‘‘It’s Time view, IL, knows about this challenge and conservatives alike. To Level The Playing Field For Main all too well. It is president, Michael Yet the House has done little more Street Businesses,’’ and it is a good ar- Abt, said that ‘‘often times with con- than hold a hearing which was added to ticle. It says, in the simplest terms, sumer electronics, the profit margin is the long list of hearings already held what he, as a businessman, sees this 10 percent or less . . . when an online on this issue over the last 20 years. issue to mean. competitor doesn’t collect taxes and Each week that the House doesn’t act There being no objection, the mate- then offers free shipping, it’s a huge ad- is another week that Congress is pick- rial was ordered to be printed in the vantage for the competition.’’ ing winners and losers—the losers RECORD, as follows:

VerDate Mar 15 2010 02:22 May 07, 2014 Jkt 039060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G06MY6.062 S06MYPT1 jbell on DSK7SPTVN1PROD with SENATE S2712 CONGRESSIONAL RECORD — SENATE May 6, 2014 (Commentary, May 6, 2014) basis, with a big vote—some 69 votes. pay a special rate to get it overnight. IT’S TIME TO LEVEL THE PLAYING FIELD FOR We can do it in the House of Represent- You can get it right then. MAIN STREET BUSINESSES atives. Let’s get something done this One of the things that is discour- (By Donnie Eatherly) year that is going to help businesses aging for retailers is, if you waited on Small-business owners like myself have for across America be profitable and hire somebody and they got the barcode and years urged Congress to create a level play- more people, put more folks to work they ordered it online and it came in ing field that will allow us to compete with across the United States. and it was not exactly what they want- our online-only competitors. One year ago At this time, I yield the floor to my ed, then they come to you and say: this week, the Senate overwhelmingly passed friend from Wyoming. Well, this is the brand you are selling. legislation that would accomplish this goal, The PRESIDING OFFICER. The Sen- Won’t you take it back? and we’re counting on the Republican-led ator from Wyoming. House of Representatives to do the same. Let’s see, they did not make any- Thanks to an antiquated tax loophole, Mr. ENZI. Mr. President, I want to thing on it, they used a whole bunch of large out-of-state online retailers can avoid thank the Senator from Illinois for his time, and now they want you to put it collecting state sales tax on purchases made excellent explanation. I have been join- in your inventory. That is very dis- by residents in my state, which gives them a ing him and watching him do that for couraging. significant 9.75 percent competitive advan- several years. It would be nice to get So think about those local clerks. tage over traditional brick-and-mortar shops this finished. They are your friends and neighbors that follow the law and collect those taxes. There are a few things we may not who are being hired locally who really To fix this unfair system, a bipartisan have mentioned that are sometimes depend on a job. If everything gets or- group of 69 senators last year passed the raised when people ask me about mar- Marketplace Fairness Act, a common-sense dered online, they will not have a job. reform that would ensure all businesses play ketplace fairness. One of them is from Your friends will have to move, and by the same rules. Unfortunately, the legis- small towns. They say: We have to go you will not have as much selection as lation has stalled in the House. on the Internet because there is not you have right now in your local store. As each week passes with no action, brick- enough selection in our town and we Again, I wish to thank all those who and-mortar businesses continue losing sales can get things we cannot buy in town voted for it, all those who have worked to a common practice known as and some of the things we can get at a on it, and all those who are considering ‘‘showrooming,’’ in which customers browse lower price by going out of town. voting for it the next time they get it and test items at local stores and then head I always ask them, when they are fig- home to buy them online knowing they will because I know we have picked up some not have to pay state sales tax. uring that lower price, are they fig- momentum since we did it last time. For many small businesses such as mine, uring it without sales tax or with sales There are people who have heard from every sale counts and losing this revenue tax, because it is not truly a lower their communities now who say: Well, hurts our ability to grow our businesses and price if what you are doing is just I did not vote right last time, but I will hire new employees. We cannot wait any cheating your local merchant out of get it right next time. I am looking longer for a federal solution to this problem. the right to collect the sales tax— forward to that, and I am looking for Main Street business owners are not ask- which he does not get paid for any- the House to finish it and send it to the ing for a handout, and we’re certainly not way—and submitting it, when the out- afraid of competition from the big guys. But President. it simply does not make sense for out-of- of-State retailer does not have to do Thanks again, I say to Senator DUR- state online retailers to enjoy such a big that. BIN, for his tremendous effort. competitive edge over local businesses that As to the revenue that companies are I yield the floor. give back to their communities. voluntarily collecting now—and there The PRESIDING OFFICER. The Sen- Despite what some have said about the are a number of them that recognize it ator from Illinois. Marketplace Fairness Act, this is not a new is difficult for everybody to keep track f tax, nor does it create any taxes. These taxes of their purchases, so they voluntarily are already on the books, and the legislation collect it—the question I have had is, MORNING BUSINESS would simply give states the necessary tools Does that money they voluntarily col- to collect them. As conservative Republican Mr. DURBIN. Mr. President, I ask Rep. Steve Womack of Arkansas has said, lect go back to the States? Yes, it ab- unanimous consent that the Senate ‘‘It’s not new, it’s due!’’ solutely does, and it will work that proceed to a period of morning busi- Not only does this level the playing field way under the bill as well. It is not ness, with Senators permitted to speak for all businesses, but it would also put addi- money that you are just sending to therein for up to 10 minutes each. tional revenues in state coffers to fund vital wherever you ordered it from. You are The PRESIDING OFFICER. Without services such as education and public safety. sending it to where it was ordered objection, it is so ordered. Importantly, the legislation also includes a from, and then they are sending it back f $1 million exemption on remote sales so to to States. put that into perspective, over 99 percent of CONGRATULATING KEN DUGAN all online sellers will not be affected by this That is what these programs the Sen- legislation in any way. In other words, all ator from Illinois mentioned do. They Mr. REID. Mr. President, I rise today the mom and pop stores who do business on keep track of what State all the pur- to honor and recognize the career of the Internet don’t have to worry about it. chases were from. Here is how difficult Ken Dugan, center director of the Si- Additionally, for the less than 1 percent of that is. When you call in your order or erra Nevada Job Corps. Ken is retiring online sellers who will be subject to col- you do it online, at some point you this month after spending 39 years in lecting sales and use taxes under this bill, have to put in an address with a ZIP the Job Corps program, 36 of which as the legislation requires each participating Code. That ZIP Code is all the program a center director. Throughout this state to provide free tax software that will time, Ken has worked tirelessly to help allow them to quickly and efficiently cal- needs in order to be able to assess your culate, collect and remit sales tax. The pro- tax. That is how those programs are improve the lives of at-risk teenagers posal also includes liability protections for designed. So if you have to give an ad- and young adults through vocational sellers and limits against audits. dress, you have to give the ZIP Code. If and academic training. This reform is long overdue, and Main you have to give the ZIP Code, they al- When Ken started his first assign- Street businesses cannot wait any longer for ready know what the tax is going to be. ment with the San Jose Job Corps in help. For those who believe in state’s rights So there is no difficulty for any size re- 1975, he never envisioned that almost 4 and the basic principle of limited govern- tailer to be able to figure out what the decades later he would be retiring with ment, we should all agree that Washington, the organization. However, Job Corps D.C., should no longer be in the business of tax is they are supposed to be doing. picking winners and losers in the market- Another argument I hear is the on- and its mission soon became a way of place. line place provides free shipping. I life for him. After stints as center di- It’s time for the House of Representatives want you to know your local retailer rector at the San Jose and Hawaii Job to stand up for the small businesses in their provides free shipping and immediate Corps centers, we in Nevada were ex- districts, follow the Senate’s lead and finally pickup. Somebody had to pay the ship- tremely fortunate to have Ken take pass marketplace fairness. ping on it. It got to the store, and you over as center director for the Sierra Mr. DURBIN. So let’s get together. can pick it up right there, instantly. Nevada Job Corps, the only Job Corps We did it in the Senate on a bipartisan You do not have to wait 2 or 3 days or center in the State. During his 19 years

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