Tod Cohen, vice president and deputy general counsel of government relations at eBay Inc., was featured in USA Today and makes the case for why Congress should not burden small businesses by passing the Internet sales tax bill. To illustrate what these small businesses are really like, he tells the story of Jon Gonzales, owner of a computer accessories business in Virginia:
“Jon Gonzales is a great example. He has a growing computer accessories business in Virginia. Because he uses the Internet, his business sells across the country. But make no mistake, his small business is nothing like the giant national retailers that combine stores, distribution centers and Internet sites. Those businesses are located around the country so they are required to collect sales taxes in every state. Now there is a proposal to require small businesses operating out of only one state to do the same.
This new legislation would suddenly treat Jon like a giant business with teams of tax lawyers and accountants. The reality is that Jon's sister Roceta handles the accounting and taxes. That's the accounting and tax team. Complying with 9,600 tax jurisdictions nationwide, and more menacingly, being audited and threatened with litigation by tax authorities around the country, is daunting. The family-run business worries about its survival.”