Federal Government Should Reinforce Physical Presence Standard for Business Taxes Across State Lines

Today, August 2, 2013, Grover Norquist, President of Americans for Tax Reform, sent a letter to the U.S. House Committee on the Judiciary urging their support of H.R. 2992: The Business Activity Tax Simplification Act (BATSA).   The bill, which is sponsored by Congressman Jim Sensenbrenner (R-Wis.), would stop states from shifting their tax burden to companies and individuals outside of the state.  Furthermore, BATSA would create a uniform business activity tax and thus reduce their uncertainty.  States are adopting tax policies that make those with a simple economic nexus liable for tax, this bill would return the states to a physical nexus focused tax system.