Industry Urges Super Committee to Close Sales Tax Loophole

The Retail Industry Leaders Association (RILA), along with 125 business groups and employers from across the country, sent a letter requesting that the Congressional Joint Select Committee on Deficit Reduction – better known as the “super committee” -- include in its recommendations to the House and Senate a provision that would close the online sales tax loophole. The industry believes that the loophole is harming brick-and-mortar retail businesses and their surrounding communities.

“Government should no longer be picking winners and losers by giving a handful of online retailers special treatment,” explained Katherine Lugar, EVP for public affairs at Arlington, Va.-based RILA. “Closing this loophole would create a true free market and would be a win-win for job creators and the states as they grapple with high unemployment and their own budget struggles.”

Added Lugar: “Given the likelihood that any solution that reduces the federal budget deficit will also affect the states, this is the perfect opportunity for Congress to return power back to the states and give them authority over their own sales tax collection laws.”

Addressed to co-chairs Sen. Patty Murray (D-Wash.) and Rep. Jeb Hensarling (R-Texas), the letter, which asks the super committee to include “e-fairness” legislation as part of any comprehensive deficit reduction package, was signed by many state and national retail trade associations and retailers, including grocers.