March 21, 2013

WASHINGTON, D.C… A Senate proposal to raise taxes on small businesses would be a prescription for economic slowdown, the nonpartisan Information Technology Industry Council (ITI) warned Wednesday.

This week, as part of its consideration of the federal budget, U.S. Senator Mike Enzi, R-Wyo., is expected to offer an amendment clearing the way for governors and state legislators 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. 

“Every time we see encouraging economic news, some members of Congress come along with proposals that would increase the burden on small businesses.  This new online sales tax is another example of Congress being out of step with the rest of the country,” explained ITI Director of Government Relations Andy Halataei.  “It makes zero sense to add new taxes on small businesses at a time when the country is beginning to get its economic momentum headed in the right direction.”

“It also remains to be understood how exactly the amendment’s sponsors intend to impose a bureaucratic new tax collection regime through the budget reconciliation process,” Halataei added.  “Senator Enzi’s amendment 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.”

The Senate may begin debate on the federal budget this afternoon.

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 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.