Internet Sales Tax Would Kill Small Business

Catesby Jones is a small business owner who is sharing his story and telling us why he is so concerned about the Internet sales tax.  Jones owns a company called Peace Frogs that is based in Virginia.  But it is the Internet that makes his business possible.  He calls the Internet sales tax “an attack on small businesses like mine.”

We have made several arguments against the Internet sales tax.  Small businesses would have to comply with America’s 9,646 different taxing jurisdictions and to collect and remit taxes in 46 states.  Small businesses like Peace Frogs do not have the administrative resources to comply with these burdensome regulations.

This tax would also undermine the principle of federalism and would grant states the authority to force online retailers (with online sales over $1 million per year) to collect sales taxes for states in which they have no physical presence.  Heritage explains:

Abandoning the physical presence standard would be an egregious violation of basic principles of federalism, because it would allow states to expand their power to tax and to regulate beyond their borders.

Jones and other small business owners who depend on the Internet for their success will be harmed by the Internet sales tax.  This bill — though it is called the Marketplace Fairness Act — is anything but fair.

Email your representatives in Congress to tell them you oppose the Internet sales tax.

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2 thoughts on “Internet Sales Tax Would Kill Small Business

  1. Pingback: Internet Sales Tax Would Kill Small Business | Gardening Motion

  2. I strongly support and urge Congress to immediately pass the Marketplace Fairness Act.

    The Marketplace Fairness Act promotes greater efficiency and profitability for millions of small businesses. Modern technology freely available today combined with the simplification standards set forth in the Marketplace Fairness Act eliminates the burdens SCOTUS was compelled to consider back in 1992. Modern technology freely available easily and seamlessly automates sales tax calculations, collections and remittances for any jurisdiction in any state eliminating the concerns of 1992. In addition passage of legislation insures merchants will be forever indemnified against audit issues. All merchants will be freed from 1992 legacy burdens and provided with greater efficiency and profitability providing more time and money necessary to grow their businesses. Heck, it is now much much simpler for business to process sales tax for thousands of jurisdiction in dozens than deal with the burdensome complexities involved in shipping goods to over 40,000 different zip codes.

    With more and more states passing individual nexus legislation merchants have more to fear should the Marketplace Fairness Act not grant States’ rights to choose collection of sales/use taxes already due since 1932 in most states.

    As an added bonus consumers existing burdens of currently having to self track and remit sales/use tax on their Internet purchases will be eliminated. Honorable tax payments will be automatically remitted back to their jurisdictions funding programs and services demanded through their ballot initiatives.

    Simplification and efficient equal application of existing sales tax policy will lower individual tax burdens providing consumers with a greater amount of disposable income. Continuing to do business as usual compels states to continue raising more harmful income, property and state fees to compensate for increasing amounts of sales tax evasion.

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