On Thursday, Congressman Jim Sensenbrenner (R-Wis.) introduced the “No Regulation Without Representation Act” in the House of Representatives. This bill prevents state governments from imposing regulatory burdens on citizens and businesses in other states.
This follows an increasing problem of states trying to increase their own revenues by shifting economic burdens onto other states. Included in this trend is a South Dakota law that resulted in Amazon cutting off service to the state, and a California law that threatens farmers in surrounding states.
The Sensenbrenner bill requires that businesses have a physical presence in the state in order for these states to export taxes and regulatory burdens onto taxpayers who have no representation.
Congressman Sensenbrenner said of his bill:
“States should not have the ability to tax non-citizens, plain and simple. This legislation would help reduce burdensome overregulation, keep government overreaches in check, and ensure that only residents of a state are subjected to tax obligations.”
Sensenbrenner’s introduction of the bill comes in the midst of a fight over the Remote Transactions Parity Act, which is in the House currently. That bill runs in stark contrast to the Sensenbrenner bill in that it would abolish the physical presence requirement.