NLC Statement on Permanent Internet Tax Freedom Act

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Jun 17, 2014, 08:12 ET

WASHINGTON, June 17, 2014 /PRNewswire-USNewswire/ -- The National League of Cities (NLC) released the following statement from Clarence Anthony, NLC's executive director, on the House Judiciary Committee's plans to markup the Permanent Internet Tax Freedom Act (ITFA) on Wednesday:

"The move by the House Judiciary Committee to make the internet tax moratorium permanent is simply bad policy that prevents local communities from making their own decisions and determining how the programs and services they deliver to their residents.

"The Internet tax moratorium was conceived to help grow the Internet when it was first becoming commercially viable. But now that the Internet has become ubiquitous and more and more services are moving from a telecommunications/cable delivery system to broadband, it no longer needs special tax protection.

"To protect the fiscal health of local governments and the communities they serve, NLC cannot support anything more than a short-term extension of the ITFA. Permanently extending ITFA would distort the federal-state-local relationship as it is a federal preemption of state and local authority.

"Local communities, and the nation, would be better served if the House Judiciary Committee worked to put Main Street retailors on the same level playing field as online retailors by taking up and passing the Marketplace Fairness Act.

"Main Street retailers are the backbone of our local communities. These Brick and mortar shops need Congress to end the special tax status for online retailers and allow for fair competition. Rather than focus on ITFA, we urge the Committee to focus its energies on passing the Marketplace Fairness Act."

The National League of Cities (NLC) is dedicated to helping city leaders build better communities. NLC is a resource and advocate for 19,000 cities, towns and villages, representing more than 218 million Americans.

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SOURCE National League of Cities