WASHINGTON, D.C…. A proposal introduced in the House and Senate this week would jeopardize small business growth and job creation, the nonpartisan Information Technology Industry Council (ITI) warned Thursday.
“This legislation would raise the tax burden on small businesses at the very moment that the economy is trying to recover from the recession. Adding new taxes on small businesses is the wrong approach for lasting U.S. economic strength,” explained ITI Director of Government Relations Andy Halataei.
“The bill’s small business exemption remains is extremely inadequate. The Marketplace Fairness Act would impose a costly mandate on small businesses by requiring them to collect and remit state sales taxes in numerous tax jurisdictions across the country, including ones where they have no physical presence at all. Congress has been unwilling to embrace this approach in the past and now is not the time to raise taxes on small businesses” Halataei added.
The Marketplace Fairness Act would allow governors and state legislatures the authority to impose significant new taxes on online purchases, a move that would have a stifling effect on small retailers that have moved to online channels to sell their products. The primary Senate sponsor is U.S. Senator Richard Durbin, D-Ill.; in the House, the primary sponsor is U.S. Rep. Steve Womack, R-Arkansas.
The Information Technology Industry Council (ITI) is the premier advocacy and policy organization for the world’s leading innovation companies. ITI navigates the relationships between policymakers, companies, and non-governmental organizations, providing creative solutions that advance the development and use of technology around the world. Visit itic.org to learn more.