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Congress should pass legislation that authorizes states to require out-of-state sellers to collect and remit sales taxes without imposing any undue burden on these sellers in order to equalize online and "brick-and-mortar" retailers.

Congress should allow states to require out-of-state sellers to collect sales tax, but it should only grant this authority under a framework that ensures that states create and maintain a fair and simple tax system that does not unduly burden out-of-state sellers. States rightly argue that tax laws need to evolve to allow them to require out-of-state sellers without nexus to collect and remit taxes on Internet sales to state residents. Neither Internet retailers nor brick-and-mortar retailers should receive preferential tax treatment.