DMA Expresses Disappointment with Introduction of the 'Marketplace Fairness Act'
November 9, 2011 — The Direct Marketing Association (DMA) expressed disappointment with the introduction today of the “Marketplace Fairness Act” in the Senate by Senators Lamar Alexander (R-TN), Mike Enzi (R-WY), Dick Durbin (D-IL), and Tim Johnson (D-SD). The bill, including the section codifying the Streamlined Sales and Use Tax Agreement, does not provide the needed harmonization across state taxing structures — neither does it sufficiently reduce the deficiencies that led the Supreme Court in its Quill v. North Dakota decision to restrict states from requiring remote sellers to collect sales tax in the first place.
This bill, even in the best of economic times, is bad policy as it interferes with the free flow of commerce among the states, a principle upon which the United States was founded. In these difficult economic circumstances, placing new, unfunded mandates on out-of-state companies to comply with complex and changing tax structures in many states around the country will hamper e-commerce, a fast growing segment in our economy.
DMA believes that Congress should reject this effort, and instead seek real efficiency and harmonization among state taxing regimes in order to achieve a truly streamlined system of sales tax collection.
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About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the world’s largest global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents companies from dozens of vertical industries in the US and 48 other nations, including half of the Fortune 100 companies.
In 2010, marketers — commercial and nonprofit — spent $153.3 billion on direct marketing, which accounted for 54.2 percent of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $1.8 trillion in incremental sales. In 2010, direct marketing accounted for 8.3 percent of total US gross domestic product. Also, in 2010 there were 1.4 million direct marketing employees in the US. Their collective sales efforts directly supported 8.4 million other jobs, accounting for a total of 9.8 million US jobs.
The Power of Direct: Relevance. Responsibility. Results.
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