Told you so: NRF applauds tax study

A new government report on online sales tax supports what brick-and-mortar retailers have been saying for years.

The National Retail Federation (NRF) issued a statement in support of a new government study analyzing the impact of the small seller exemption in current online sales tax legislation.

NRF senior VP David French said the report shows the lack of a level playing field.

“This objective, non-partisan and peer-reviewed academic analysis and report from the Small Business Administration confirms what local retailers have been saying for decades: The lack of a level playing field between brick-and-mortar stores and their online and remote competitors is blatantly uneven and unfair, and continues to place them at a competitive disadvantage,” he said.

In his statement released Tuesday, French added: “The $24 billion sales tax gap, which is expected to grow with the rise of online shopping, will continue to disadvantage local retailers and employers, threaten Main Street communities and neighborhoods, and put additional policy and political pressure on state and local officials to increase non-sales tax revenue, like property or income taxes, to compensate for the growth in online sales.”

He called for Congress to address what he called an “online tax loophole,” and offered support for the Marketplace Fairness Act.

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