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Congressional Record—Senate S7233

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Congressional Record—Senate S7233 November 9, 2011 CONGRESSIONAL RECORD — SENATE S7233 have just as severe an impact. I would whatsoever. Why are we here in Wash- The Marketplace Fairness Act would like to spend a minute or two talking ington creating a disincentive for the allow States—not require States—to be about the destructive taxes that are in small business owner? Why are we cost- able to have the out-of-State online this legislation. ing Americans jobs? sellers, providing they sell more than When we add it all up, the new health The Congressional Budget Office has $500,000 in a year, to collect the State care law basically requires new taxes of looked at this legislation. They have sales tax. I have also been a State leg- about $1⁄2 trillion—not to pay down the come to the conclusion that the Amer- islator, and I can tell you we never in- national debt, not to solve the Nation’s ican labor supply will be reduced by tended to pass a law to tax the people debt woes but to create a new entitle- 100,000 workers. The CBO quote is this: on Main Street who buy the yearbooks ment. The Treasury Department’s In- The law will encourage some people to and participate in community activi- spector General for Tax Administra- work fewer hours or to withdraw from the ties to be the ones to collect the tax, tion has looked at the impact of the labor market. and anyone from out of State to not health care law on the Tax Code and The more we learn about this health have to do it. This bill cleans up that said this: ‘‘The law is the largest set of care law, the more we come to realize problem at the same time. Does it tax law changes in 20 years.’’ this is flawed policy. It passed and it make much of a difference? Yes. That is no small undertaking when was signed into law by the President of We are being asked as a Congress to we think about all that has happened the United States, but it goes beyond give money to the States for their over the last couple of decades, that we flawed policy. It impacts real people teachers, their firemen, and their infra- ended up with an impact on the Tax who are trying to make a real living. structure. It is because there is a de- Code that is the largest set of tax law My comments today started with a creasing amount of revenue going to changes in 20 years, according to the story about 50 Nebraskans who lost them through sales taxes that are Treasury expert who looked at this. their jobs or are about to lose their owed, but are not currently being col- There are 42 separate provisions adding jobs because of the health care law. I lected. People may not realize it, but to or amending the Internal Revenue am concerned that it is not going to when they buy something online, if the Code in the health care law. So much stop there; that as employers are more tax is not collected by the seller, they of this law was put together in the last and more burdened with the thousands still owe it. This is not a new tax; it is days of this debate, people were scram- of pages of regulations, they will come a tax that is already on the books. No bling around trying to read it and un- to realize their best strategy is to try legislator ever intended for it to just be derstand it and get information out to to figure out how to deal with these for Main Street retailers. If States so their constituents. new requirements and they will pull choose, sales taxes should be collected Speaker PELOSI said: We will prob- back on hiring, which is exactly what by all retailers. In our attempts to fix ably have to pass this law to figure out we do not want to have happen in this this problem, we have received a num- what is in it. And we are now figuring economy. ber of support letters for this new bill. With that, I conclude my remarks out what is in it, and it is so much I hope everybody will take a look at and our colloquy today. more than a health care law. There are them. They can view them online. I ask 42 separate provisions that add to or I yield the floor. I suggest the ab- sence of a quorum. unanimous consent these letters be amend the Internal Revenue Code. printed in the RECORD. The Boston Globe weighed in on this. The PRESIDING OFFICER (Mr. UDALL of Colorado). The clerk will call There being no objection, the mate- They pointed out the 2.3-percent excise rial was ordered to be printed in the tax on medical device suppliers, ac- the roll. The legislative clerk proceeded to RECORD, as follows: cording to the Globe, ‘‘will force indus- call the roll. NATIONAL CONFERENCE try leaders to lay off workers and curb Mr. ENZI. Mr. President, I ask unani- OF STATE LEGISLATURES, the research and development of new mous consent the order for the quorum November 9, 2011. medical tools.’’ There is no question call be rescinded. Hon. RICHARD DURBIN, about it. When we add up the tax law The PRESIDING OFFICER. Without U.S. Senate, changes, the impact from a regulatory objection, it is so ordered. Washington, DC. standpoint and the other provisions of Mr. ENZI. I also ask unanimous con- Hon. LAMAR ALEXANDER, this law, this is not going to result in U.S. Senate, sent that the Senator from Illinois and Washington, DC. the promised jobs that Speaker PELOSI the Senator from Tennessee be allowed Hon. MICHAEL ENZI, spoke of. It is a job killer. to enter into a colloquy with me for U.S. Senate, If we look at what this law is doing, the time that we have allotted. Washington, DC. it will actually shrink the labor force, The PRESIDING OFFICER. Without Hon. TIM JOHNSON, actually create a disincentive to work objection, it is so ordered. U.S. Senate, or to receive a pay raise. I referenced f Washington, DC. earlier in my comments a small busi- DEAR SENATORS DURBIN, ENZI, ALEXANDER ness owner in the Bellevue, NE, area. I MARKETPLACE FAIRNESS ACT AND JOHNSON: On behalf of the National Con- was sitting in a Business Roundtable a Mr. ENZI. Mr. President, I am going ference of State Legislatures (NCSL) we little more than a year ago. We were to talk about a problem I have tried to would like to express our support and appre- ciation for your introduction of the Market- just going around the room, and I was solve for 14 years. Today, I think we place Fairness Act, which will provide those listening to small businesses describe have a new solution and ‘‘the’’ solu- states that comply with the simplification to me some of the challenges they face. tion—The Marketplace Fairness Act. requirements outlined in the legislation, the A woman, a small business owner, Our solution has to do with sales taxes authority to require remote sellers to collect said to me: MIKE, we have studied this that are not being collected at the those states’ sales taxes. health care law every which way we present time. It is a loophole in the tax At a time when states continue to face se- can. I am right on the edge of having 50 law. vere budget gaps—states closed shortfalls to- employees. I am told if I go over 50 em- I used to be a retailer. I never taling $72 billion leading into the FY 2012 budget process—it is essential states be al- ployees, I am now subject to all of the thought it was fair that I had to collect lowed to collect the revenue generated by ramifications of the health care law. the sales taxes but the people from out uncollected sales taxes. In 2012, states will After looking at this I have decided I of State did not have to collect the collectively lose an estimated $23.3 billion in will not grow my business beyond 50 same sales tax. I used to be a mayor, uncollected sales taxes from out-of-state employees. I do not want to deal with and this bill is a jobs bill and an infra- sales, with more than $11.3 billion alone from this health care law. structure bill. A lot of people do not re- electronic commerce transactions, according Her discussion with me has stuck alize that sales taxes help pay for to a study by the University of Tennessee. with me all of these months. Why is it schools, police and firemen. They may The amount of uncollected sales taxes will continue to grow, especially with the unprec- that Washington would actually pass not realize it pays for infrastructure, edented growth of online commerce. legislation that would discourage her such as streets and sewers. I always The enactment of the Marketplace Fair- from hiring additional employees to tell people it is a little tough to flush ness Act is imperative in light of the current grow her business? It makes no sense the toilet over the Internet. deliberations by the Joint Select Committee VerDate Mar 15 2010 02:01 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00005 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.006 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7234 CONGRESSIONAL RECORD — SENATE November 9, 2011 on Deficit Reduction and resulting seques- NATIONAL ASSOCIATION OF COUNTIES, of taxation and help our members recover tration if the ‘‘Super Committee’’ is unsuc- Washington, DC, November 9, 2011.
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