[Congressional Record Volume 144, Number 53 (Monday, May 4, 1998)]
[Senate]
[Page S4214]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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            CONSUMER AND MAIN STREET PROTECTION ACT OF 1998

 Mr. GRAHAM. Mr. President, I rise to announce my cosponsorship 
of Senator Bumpers' ``Consumer and Main Street Protection Act of 
1998.'' My support for this legislation is based on four important 
principles:
  First, this bill promotes tax fairness. Mail order businesses 
unfairly benefit from their unique status. They can engage in 
interstate commerce--sell products to customers in any state of the 
nation--but are not responsible for collecting state and local sales 
taxes.
  This places state and local businesses, which have no choice but to 
collect sales tax on the merchandise they sell, at a severe competitive 
disadvantage. This is especially damaging to small businesses, which 
are the backbone of our nation's economy. Over the last five years, 
Florida businesses with less than 20 employees have created 71 percent 
of all new jobs in the state--775,000 in total. Our bill will put main 
street merchants on the same competitive footing as mail order 
businesses.
  Second, this bill protects consumers. It prevents them from 
experiencing an unexpected and unwelcome tax surprise. Many mail order 
shoppers are unaware that most states are empowered to assess a sales 
tax on the purchase of goods sold across state lines. They are 
surprised when states like Florida come around to collect sales tax due 
on particularly expensive goods.
  Third, this bill preserves states' rights. Mr. President, there is no 
state right that is more fundamental than the right to decide how to 
raise revenue. Because the federal government has not protected this 
right, Florida currently loses an estimated $168.9 million each year in 
potential revenues. Nationwide, states have lost more than $3.3 billion 
as a result of Washington's handcuffs. If we are determined to make 
good on our promise to return more power and responsibility to states 
and local communities--and I think we must be--it makes no sense to 
dictate how Governors and legislators raise money. That's their job, 
not ours.
  Mr. President, state officials from across the nation are asking for 
our help. But don't take my word for it. Ask the National Governors 
Association, which once again passed a resolution supporting this kind 
of federal legislation at its Winter 1997 meetings.
  Finally, this bill provides fairness to mail order firms. Most 
companies with nationwide sales of less than $3 million are exempt. The 
act gives companies the option of collecting a single blended rate for 
each state rather than the myriad of different state and local rates. 
Out of state companies only have to file tax returns once per quarter. 
And states participating in the Act must establish a toll-free number 
for out-of-state companies to obtain information and forms.
  Mr. President, it is time that the federal government remove the 
straitjacket from states and restore to Governors and state legislators 
their power to raise revenue. I commend Senator Bumpers for his efforts 
to preserve states' rights in these important fiscal matters.

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