Two major economic development announcements out of Washington:
- The White House has nominated a former Congressman and current appointee at the Department of Health and Human Services, John Fleming, to lead the Economic Development Administration.
- In a 5-4 decision, the U.S. Supreme Court has overturned South Dakota v. Quill, allowing states to collect sales tax from online merchants.
John Fleming is currently the Deputy Assistant Secretary for Health Technology Reform at the Department of Health and Human Services (HHS). Previously he was a Member of Congress representing the 4th District of Louisiana. He is a medical doctor by training. The nomination will be reported out in the Senate before being referred to committee for consideration. IEDC will reach back out to our members in the weeks and months ahead while the nomination is under consideration.
The 1992 ruling in South Dakota v. Quill was years before internet sales exploded into what we have today. States have subsequently lost billions of dollars in tax revenue annually, dollars that could have funded economic development programs, infrastructure, worker training, and more. IEDC has long advocated for a remedy, either through the Quill decision being overturned or through Congressional action. Congress has considered multiple iterations of the Marketplace/Main Street Fairness Act over the past few years, but was unable to push any version all the way to the White House for signature. This ruling will give states broad authority to collect sales tax on internet purchases even if the retailer does not have a physical presence in their own state. IEDC will closely monitor this policy development and report back to our members in the weeks and months ahead.
We have also heard reports the Office of Management and Budget (OMB) at the White House will release a long-awaited plan for reorganizing the several departments, agencies and programs across the federal government in the next day or so. We will examine this plan closely and share details with our members as they become available.
Please contact Matt Mullin at email@example.com with questions, comments or concerns.