On Thursday, December 11^th, the House of Representatives passed a government spending bill prior to departing for the holiday season. Included in the spending bill was a short term extension of the Internet Tax Freedom Act (ITFA), a very important measure that prevents state and local governments from imposing new taxes on Internet access and prohibits any multiple or discriminatory taxes on e-commerce. The controversial Internet sales tax bill, entitled the Marketplace Fairness Act, was not included in the spending package passed by the House, despite the efforts of the pro-sales tax lobby to force the bill to a vote in the final days of Congress.  

The Senate passed the Marketplace Fairness Act in May of 2013. Although Senate leadership and MFA proponents pressured the House of Representatives to take up the flawed bill, House Leadership, namely Speaker of the House, John Boehner (R-OH), and Chairman of the Judiciary Committee, Bob Goodlatte (R-VA), expressed major reservations with the legislation and its impact on Internet- enabled small businesses. Chairman Goodlatte released a set of 7 principles in September of 2013 that were intended to guide House members as they deliberated the Internet sales tax issue. The MFA was in direct conflict with the majority of the principles, signaling that the House might be looking to go in a very different direction than the Senate. In addition, Speaker Boehner recently commented that the MFA would not move through the House this year, thwarting supporters’ hopes for passage before Congress left for the holidays.

eBay Inc. has strongly opposed the Marketplace Fairness Act because of the tremendous burden it would place on Internet-enabled small businesses all across the country. eBay Inc. applauds Speaker Boehner and Chairman Goodlatte for preventing the Marketplace Fairness Act from being enacted this Congress and protecting small businesses this holiday season from new sales tax burdens.

To join eBay Inc. in thanking Speaker Boehner and Chairman Goodlatte for their efforts on behalf of American small businesses, please visit Twitter and Facebook.