A measure calling on states to simplify their tax codes to allow collection of taxes on remote commerce was introduced in the Senate this week. The measure, the "Internet Tax Moratorium and Equity Act" (S. 2775) is sponsored by Senators Byron Dorgan (D-ND) and George Voinovich (R-OH).

The bill extends the current moratorium on new and discriminatory taxes, and, more important, calls on the states to adopt a tax simplification compact, creating a mechanism for collection of existing sales and use taxes on remote commerce.

"Senator Dorgan's measure is a critical step toward creating a level tax playing field for all retailers, remote and 'brick and mortar,'" said Steve Pfister, NRF's Senior Vice President for Government Relations. "This bill will ensure that Main Street retailers do not face a competitive disadvantage with remote retailers."

Specifically, the legislation extends the existing moratorium on Internet access and discriminatory taxes through December 31, 2005; authorizes states to enter into an Interstate Sales and Use Tax Compact to streamline the tax system; and authorizes states that adopt the Compact to require remote sellers with more than $5 million in annual gross sales to collect and remit sales and use taxes on remote sales.

NRF will continue working with the Senate in an attempt to secure passage of legislation that will address the inequity that exists in sales and use tax law. If you have any questions, please contact Scott Cahill at (202) 626-8168.

The Senate voted on Thursday to block the Occupational Safety and Health Administration (OSHA) from imposing costly workplace standards to protect people from ergonomic injuries.

The 57-41 vote, on an amendment to the annual labor and health spending bill sponsored by Senator Mike Enzi (R-WY), was mostly along party lines and comes on the heels of a similar vote in the House of Representatives to block the standards, which OSHA has been developing over the past eight years. Democratic Members said President Clinton would veto the overall bill, which provides annual spending for three federal departments: Labor, Education, Health and Human Services.

The proposed rules, made public in November, would require employers to minimize the everyday physical stresses of a broad range of jobs. Final standards are scheduled to be released by the end of 2000. Congress has passed separate legislation to prevent the regulations from taking effect until the results of a National Academy of Sciences (NAS) study is completed.

The ergonomics rule would be the most expensive regulation ever proposed by OSHA. However, while OSHA estimates the rules would cost businesses $4.7 billion to implement, a number of other estimates have placed the cost at between 2 and 15 times higher. The Small Business Administration's Office of Advocacy estimates the cost at $60 billion a year or more.

NRF filed comments in opposition to the new regulations with OSHA earlier this year, and will continue to work with Congress to ensure the regulations are not imposed before the NAS study is completed. If you have any questions, please contact Katherine Graham Lugar at (202) 626-8195.

A resolution calling for the United States to withdraw from the World Trade Organization (WTO) was soundly rejected by the House of Representatives late Wednesday. The bipartisan 363 to 56 vote demonstrates continued support for free trade by Congress. A provision in the law, passed when the U.S. joined the WTO, allows for any member of Congress to introduce a withdrawal resolution every five years.

NRF sent a letter to the House of Representatives expressing the importance of U.S. participation in the WTO to the retail industry. "We strongly believe that this resolution is a reckless assault on U.S. economic interests and that it should not just be defeated, but overwhelmingly defeated, by the House," the letter read. "U.S. retailers abroad would find themselves without recourse to international rules protecting them from intellectual property rights violations, arbitrary actions by foreign governments, or the benefits of future liberalization of distribution services markets."

After the defeat of the resolution, Erik Autor, NRF's Vice President and International Trade Counsel, said, "The House of Representatives has again demonstrated its support for free trade and the importance of a rules-based international trade system. Membership in the WTO is important for the U.S. to ensure fair and equitable trade and the elimination of trade barriers with other nations through internationally-recognized rules, which help support economic growth and employment."

If you have any questions, please contact Erik Autor at (202) 626-8104. 

In keeping with a promise made by Republican leadership, H.R. 1304, the "Quality Health-Care Coalition Act," is set to be considered by the House of Representatives next week. The measure creates an exemption under anti-trust law that would permit doctors to form "cartels," leading to higher fees and increased health insurance costs.

The measure originally had been scheduled for consideration last month, but after a closed Republican meeting, 86 GOP Members voted for a resolution to pull the measure. The House Rules Committee then failed to consider the legislation. Despite the opposition from within his own party, House Speaker Dennis Hastert (R-IL) promised bill sponsor Rep. Tom Campbell (R-CA) that the measure would be considered before the July 4th recess.

By removing competition, health care professionals could engage in boycotts or price-fixing, which are currently illegal. It would also allow doctors to insist on contracts that prohibit nonphysician providers' services, depriving consumers of their right to choose. Overall, the bill could increase health care costs by as much as $80 billion a year.

NRF sent a letter to the House of Representatives expressing the retail industry's strong opposition to the measure. However, with 220 cosponsors, H.R. 1304 will be difficult to defeat. NRF will continue to work to block passage of the bill as it moves to the Senate.

If you have any questions, please contact Katherine Graham Lugar at (202) 626-8195.

Washington Retail Insight is published by the National Retail Federation, 325 7th Street, NW, Suite 1000, Washington, DC 20004. Please contact Mike Epstein at (202) 783-7971 or e-mail with comments, suggestions, or for subscription information.