Womack Responds to New Study on MFA Economic Impact
Conservative Economist Laffer: Significant GDP Growth, Job Creation to Follow MFA Passage
Conservative economist, Dr. Art Laffer, today released a study, Pro-growth Tax Reform and E-fairness, which concluded that passage of the Marketplace Fairness Act (MFA; S. 743/H.R. 684) could result in $563.2 billion in state GDP growth and 1.5 million new jobs nationwide – with $6.5 billion in GDP growth and 22,600 new jobs in Arkansas alone – by 2022.
By giving states the ability to close the online sales tax loophole, MFA saves small businesses and allows Internet sales and use tax revenues to reduce the burden of other taxes, such as marginal income tax rates.
Congressman Steve Womack (AR-3) released the following statement in response to the new study:
"Our small retail businesses can grow, create jobs, and prosper if Congress passes the Marketplace Fairness Act and closes this unfair and confusing tax loophole – one that amounts to a subsidy for out-of-state businesses. Dr. Laffer’s study clearly shows this. And it’s not just small businesses that stand to benefit.
“Leaders like Governor Scott Walker of Wisconsin and Governor John Kasich of Ohio have already implemented plans to cut their state income taxes once they are enabled to collect this due – not new – sales tax, allowing taxpayers to also see significant economic growth from tax cuts MFA makes possible.
"The Arkansas legislature made cutting taxes a top priority and passed tax cuts of over $120 million this year. There’s no question in my mind that when Congress passes MFA, more tax cuts will be first thing on our state’s agenda, as well as many others across the country.
“I'm thrilled by Dr. Laffer’s study and encouraged by the tremendous economic benefits it highlights. So, let’s level the playing field for our brick and mortar retail businesses once and for all."
A copy of the Laffer study is can be found here.
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