Sen. Ted Cruz warns of a potential tax catastrophe that both Republicans and Democrats could sign on to.
This tax catastrophe is the Marketplace Fairness Act (MFA), which would force remote sellers to collect and pay taxes to each of their customers’ home states. The administrative and legal costs of this tax could be crushing to internet retailers.
Republican Sen. Mike Enzi already joined with Democrat Dick Durbin in trying to pass MFA unnoticed by attaching it to the Internet Tax Freedom Act.
Cruz revealed his concern that Republican lawmakers would join with Democrats to push through this Act during Congress’ lame duck session, in an effort to cater to big retailers in their states.