Letter to the Editor: Internet Sales Tax Would Throw Wrench in Economy

June 24, 2009

In a letter to the editor of the Billings Gazette, James Cole notes that the proposed Streamlined Sales Tax Project leaves open the possibility of 15,000 different tax rates. "Imposing upon small businesses mandates that would increase their cost of operating will ultimately amount to an anti-stimulus plan..."

More than 700,000 small businesses in the United States use the Internet marketplaces to reach consumers across the globe. Several states have begun lobbying Congress for a grant that would provide them with the authority to require the collection and remittance of sales taxes from online businesses located in other states. The proposed Streamlined Sales Tax Project would allow for two rates per tax jurisdiction, leaving open the possibility of 15,000 different tax rates nationwide and forcing small business owners to remit taxes at 15,000 different rates, which would require them to pay for expensive third-party accountants, tax lawyers and new technologies.

I have a small business here in Montana and I purchase products off the Internet. Paying a tax in other states for my purchases could force me to pass this expense to my clients. My clients are already strapped with all the increased taxes and the rising cost of living we have been hit with in the past several months.

Montana\'s and the United States\' economy need strong entrepreneurs and small businesses in order to thrive. Imposing upon small businesses mandates that would increase their cost of operating will ultimately amount to an anti-stimulus plan, leading to lost jobs, an increase of small businesses closing and higher prices for the consumers, all of which we cannot afford to happen right now.

Tell your senators not to support this bill that will impose new tax burdens on American consumers and small-business owners and hamper the growth of e-commerce.

James Cole, Billings