On June 22, 2009, FEI's Committee on Taxation (COT) joined a group of businesses and associations in a letter to the U.S. House Judiciary Committee and Subcommittee on Commercial and Administrative Law that expressed strong support for H.R. 1083, the Business Activity Tax Simplification Act of 2009 ("BATSA").  BATSA, recently introduced by Representatives Rick Boucher (D-VA) and Bob Goodlatte (R-VA), with strong bipartisan support among members of the Judiciary Committee, would clarify the constitutional requirement for a physical presence nexus standard governing state assessment of corporate income taxes and comparable taxes on a business.

BATSA would ensure fairness, minimize costly litigation for both state governments and taxpayers and create the kind of legally certain and stable business environment that encourages business to make investments, expand interstate commerce and create new jobs. At the same time, the bill would ensure that businesses continue to pay business activity taxes to states that provide them with direct benefits and protections.

• BATSA Letter to Conyers and Cohen 6-22-09