As you may be aware, the Marketplace Fairness Act of 2013 passed the U.S. Senate on May 6. What you may not know is that ASPPA and NAPA are opposing the legislation in its current form. (In fact, a letter we wrote to members of Congress explaining our opposition was read in its entirety by Sen. Orrin Hatch (R-UT) on the floor of the U.S. Senate.)
It’s not that we have a problem with the concept that state and local municipalities should be permitted to impose sales taxes on on-line purchases of merchandise from retailers like Amazon. What does concern us, however, is that there is nothing in the legislation that would prevent state and municipalities from assessing a tax on financial serves conducted through the Internet.
For example, there is nothing in the bill to prevent any state, city or municipality to assess a tax on 401(k) plan investment transactions originating in their locale. In an era in which there are proposals in the European Union and the U.S. Congress to assess a tax on all financial services transactions, and in which states and local municipalities are cash-strapped and searching for every penny of revenue to pay for grossly underfunded pensions (among things), this is not a concern to be taken lightly.
That’s why ASPPA and NAPA are working with senior members of the House of Representatives to add language in the House version of the Marketplace Fairness Act to ensure that states and cities will not be able to tax financial services transactions. Given all the attention that 401(k) fees are getting these days, the last thing that’s needed is an unnecessary tax on Americans’ retirement savings.
Brian Graff is the CEO/Executive Director of ASPPA and NAPA.
