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Date Posted: 16:47:52 08/26/05 Fri
Author: cranston36
Subject: Internet Tax

I understand that in the name of simplification, a group of cash-strapped states is proposing the Streamlined Sales Tax Project (SSTP).
The goal of the SSTP is supposed to be simplification but it does not succeed in simplifying state and local tax laws sufficiently to ease the collection burden on internet or eBay sellers.
The State Simplification Tax Project (SSTP) is a crime against logic. It does not reduce the 7,600 different state, county and city taxing jurisdictions.
The SSTP allows for a different rate for each zip code. Nearly 49,000 different jurisdictions. Does that sound streamlined to you?
Small business owners will be disadvantaged by a distant sales tax collection regime that forces them (and me) to comply with thousands of different tax rates, local laws, filing instructions, and audit
procedures.
Offline competitors being only required to collect and remit taxes in one jurisdiction would then be awarded unfair advantages. This could force tens of thousands of Internet businesses to shut down.
The Congress is being asked to subsidize the Sears and JC Penney catalog business.
There should be no increased tax burden on small business.
Now is definitely not the time to impose new tax burdens on American consumers and small business owners, or do anything to hamper the growth of e-commerce.
Tax administrators and State Senators and Representatives from around the nation are involved in the Streamlined Sales Tax Project. Don’t they have enough work to do without having to try to throw Americans out of work?

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