Coalition to Protection Interstate Commerce

Floor Statement of Congressman Rick Boucher on Introduction of The Business Activity Tax Simplification Act of 2008

February 7, 2008

Madam Speaker, I rise to introduce the Business Activity Tax Simplification Act of 2008, a measure that will bring much needed clarification to the circumstances under which states may impose taxes on out of state businesses. This is a bi-partisan measure in the principal sponsorship of which I am pleased to be joined by my Virginia colleague Bob Goodlatte. We are joined in sponsorship of the measure by Mr. Chabot, Mr. Artur Davis, Mr. Feeney, Mr. Gallegly, Ms. Herseth Sandlin, Ms. Jackson- Lee, Ms. Lofgren, Mr. Pence, Mr. Bobby Scott, and Mr. Wexler, with whom we are pleased to serve on the House Judiciary Committee.

Traditionally, states and localities have levied corporate income, franchise and other taxes only on those businesses that have a physical presence in the taxing jurisdiction. The growth of the Internet and other forms of advanced communications has made it possible for businesses to conduct a broad range of transactions without the constraints of geopolitical boundaries. As a result, some states have attempted to expand their tax base by assessing business activity taxes against out- of-state companies that have customers but no property or employees in the taxing state. Both large and small companies are facing an increasingly unpredictable tax environment, which hinders business expansion and threatens the continued development of e-commerce.

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Written testimony in support of H.R. 5267, submitted for the record of the House Judiciary Commercial and Administrative Law Subcommittee hearing on H.R. 5267, the Business Activity Tax Simplification Act of 2008

• Testimony of 303 Products, Inc.


• Statement for the Record on behalf of the American Bankers Association


• American Financial Services Association letter to Honorable Linda T. Sanchez and Honorable Chris Cannon of 7/2/08


• American Home Furnishings Alliance letter to Honorable John Conyers of 6/18/08


• Testimony of the American Homeowners Grassroots Alliance


• Prepared Statement of American Trucking Associations


• BIFMA International Statement


• Business Roundtable letter to Honorable Linda Sanchez and Honorable Chris Cannon of 6/20/08


• California Bankers Association letter to Chairman John Conyers and Chairwoman Linda Sanchez of 6/20/08


• Statement of Teresa Casazza, President, California Taxpayers Association


• The Computing Technology Industry Association Testimony


• Testimony of the Council On State Taxation (COST)


• Coalition for Rational and Fair Taxation letter to Honorable Linda T. Sanchez and Honorable Chris Cannon of 6/19/08


• Letter of Support by Mark B. Wieser, Founder of Fischer & Wieser Specialty Foods, Inc.


• The Financial Services Roundtable letter to Honorable John Conyers of 6/12/08


• International Franchise Association letter to Honorable Linda Sanchez and Honorable Chris Cannon of 6/24/08


• Massachusetts Marine Trades Association letter to Chairwoman Linda Sanchez and Ranking Member Chris Cannon of 6/24/08


• Motion Picture Association of America, Inc. letter to Honorable Linda T. Sanchez and Honorable Chris Cannon of 6/23/08


• North American Association of Food Equipment Manufacturers, Statement of David Rolston, President and CEO of Hatco Corporation


• Statement of Jerald Otchis, Vice President Finance and Administration, Bobrick Washroom Equipment, Inc., on behalf of the National Association of Manufacturers


• Statement of the National Association for the Specialty Food Trade, Inc.


• Comments of the National Foreign Trade Council


• Statement of Kristina Rasmussen, Director of Government Affairs for the National Taxpayers Union


• Statement of the New York Bankers Association


• Testimony Submitted by the Partnership for New York City


• Written Statement of Carey J. (Bo) Horne, Past President, Prohelp Systems, Inc., and Katherine S. Horne, Past Vice President, Prohelp Systems, Inc.


• Statement of the Security Industry and Financial Markets Association


• Software & Information Industry Association letter to Honorable John Conyers of 6/20/08


• Testimony of Barry Godwin, Controller, Stingray Boat Company


• Prepared Statement of Joseph Henchman, Tax Counsel, Tax Foundation


• Statement of the U.S. Chamber of Commerce