Yesterday, a group of bipartisan Senators sent a letter to Senate leaders urging them to extend the Internet Tax Freedom Bill without the Marketplace Fairness Act. The Senators included Kelly Ayotte (R-NH), Jeanne Shaheen (D-NH), Ted Cruz (R-TX), Jeff Merkley (D-OR), Jon Tester (D-MT), and Rand Paul (R-KY).

On Tuesday, Majority Leader Harry Reid (D-NV) announced that instead of taking up the House passed permanent extension of the Internet Tax Freedom Act, the Senate would move a 10 year extension of the bill that included the Senate passed Marketplace Fairness Act. A number of Members of Congress expressed concern that the Senate would delay passage of an important piece of legislation and try to pass the Marketplace Fairness Act without making changes to protect small businesses.

"For years, the Internet Tax Freedom Act has kept the Internet free of new taxes and has helped the Internet flourish into the driver of economic growth and job creation that it is today. The ban on new Internet taxes has benefited millions of Americans,including consumers, entrepreneurs and innovators," wrote the Senators.

"Unfortunately, advocates of another, unrelated bill that would actually increase taxation over the Internet have been pushing to include the measure as part of ITFA's extensions……This legislation would hurt small online retailers that have been able to grow and create jobs by reaching new markets across the country. Instead of protecting and fostering e-commerce, which ITFA has been doing for years, this Internet sales tax legislation would stifle small business growth and job creation--running counter to ITFA's goals and track record."

Read the full letter. For information on eBay Inc.'s position on the Marketplace Fairness Act, visit our Internet Sales Tax issue page.