The digital economy has changed all our lives, so it’s no surprise that tax systems are changing too. Since modern technology allows businesses large and small to sell their products in all fifty states, there is widespread confusion and uncertainty over whether merely selling products into a state will subject a business to state tax under the Constitution’s Commerce Clause.

The Supreme Court declined to resolve the constitutional issue (called “nexus

Last week Senators Charles SchumerCharles SchumerCruz: 'Schumer and the Democrats want a shutdown' GOP fundraiser enters crowded primary for Pa. Senate seat Dems: Trump risks government shutdown over border wall MORE and Mike CrapoMike CrapoBattle begins over Wall Street rules Lawmakers call for pilot program to test for energy sector vulnerabilities Senators war over Wall Street during hearing for Trump's SEC pick MORE introduced S. 1726, the Business Activity Tax Simplification Act of 2007. This bill would make physical presence the law of the land and consequently reduce the administrative waste associated with the current controversy, which acts as an anchor on our national economy. Congress needs to do something about this issue, and the physical presence rule in S. 1726 is the option best suited to encourage economic growth.