States with conservative leadership like Ohio are eager to take advantage of this change. Legislators in Columbus have already approved language that will automatically reduce the state income tax rate based on projected new sales tax collections if the Marketplace Fairness Act is adopted federally. Ohio families will then have more money in their pocket and local businesses will be able to compete more evenly with out-of-state competitors. This is a fiscal recipe, based on sound conservative principles, which can be replicated around the country.
Arthur Laffer, the famed chief economist for President Reagan, endorsed the federal legislation in a recent Wall Street Journal column and noted that the principle of levying the lowest possible tax rate on the broadest possible tax base is the way to improve the incentives to work, save and produce—all of which are necessary to reinvigorating the American economy.
It is a conservative principle that taxes should be flat, fair and equally applied. The Marketplace Fairness Act gets our nation closer to that ideal by eliminating what has become a de facto federal subsidy for online retailers while flattening the tax code and encouraging pro-growth policies in the states. The Senate, with GOP support, will approve the bill shortly. Conservatives should rally to the cause of this important legislation and urge that the Republican House follows suit.