July 31, 2012

WASHINGTON, D.C…. As the Senate Committee on Commerce, Science, and Transportation holds a hearing entitled Marketplace Fairness: Leveling the Playing Field for Small Businesses, the Information Technology Industry Council (ITI) warned that any new tax could result in economic harm, especially for small businesses that rely on the online marketplace.  Andy Halataei, ITI’s Director of Government Relations, issued the following statement ahead of the Commerce Committee hearing:

“Online retailers – large and small alike – cannot afford the economic hit that would come from a new sales tax from the Congress.  Sales tax legislation that would overturn the Quill decision would impose a costly mandate on small businesses by requiring them to collect and remit sales taxes in thousands of tax jurisdictions across the country where they have no physical presence.   Furthermore, many of the bills before the Senate have a small business exemption that is too low and unworkable.”

“Trying to force through a complex, confusing tax hike on these businesses would hurt their efforts to create new jobs and expand commerce across the country.  These efforts take us in the wrong direction at a time when our economy is still recovering and trying to create new jobs. We urge the Congress to reject legislation that would overturn the Quill decision and, instead, focus on ways to give businesses and entrepreneurs greater resources to expand their operations and put more Americans to work. 

About ITI

The Information Technology Industry Council (ITI) is the premier advocacy and policy organization for the world’s leading innovation companies.  ITI navigates the constantly changing relationships between policymakers, companies, and non-governmental organizations, providing creative solutions that advance the development and use of technology around the world.  We develop first-rate advocacy strategies and market-specific approaches.  And we deliver results.  Visit itic.org to learn more.  

Contact:  Meghan Fletcher, mfletcher@itic.org, (202) 524-4389