Ensure Fair Competition

• As Congress considers how sales over the Internet should be addressed, they must consider how this issue will impact all retailers, especially "mom and pop" stores that cannot afford to compete in a marketplace where preferential treatment exists.
• If Congress extends the current Internet Tax Freedom Act (ITFA) moratorium without addressing the sales and use tax collection inequity, online retailers will continue to benefit from unfair business practices, while "Main Street" merchants will be left to bear the burden of collecting sales and use taxes as required by the states.

• The National Retail Federation supports responsible collection of sales and use taxes for all retail sales. All retailers, regardless of the channel, or channels in which they conduct business, should be treated equally and be subject to the same obligation of collecting state sales and use taxes, as current law requires.
• In an industry where a 1-2% profit margin is standard, a 6-8% tax differential (the average states sales tax rate) is a significant pricing advantage for Internet sellers. Consumers should pick winners and losers based on factors they decide are important, such as selection, service, and convenience. Tax policy shouldn't provide one retailer a pricing advantage over another.
• Small businesses are the fastest growing segment of the economy, employing 99% of all U.S. workers. Retailers are the fabric of many communities, fueling local economies and providing jobs for millions of Americans. In order to remain competitive with their Internet counterparts, small enterprises must be allowed to operate in a fair climate.