Internet Sales Tax: Bad for Business

“The Internet sales tax will help Main Street businesses.”

At least that’s what those in favor of the National Internet Tax Mandate would have you believe.

If passed by the House of Representatives and signed into law, this bill will require businesses to comply with out-of-state sales tax codes – over 9,600 codes nationwide.

Yet supporters say this compliance nightmare will somehow “create jobs” and "restore fairness to the marketplace."

Well, here’s evidence to the contrary.


Carbon Connections owner Gerald Holland (right), with loyal customer

Last week, I had the opportunity to meet small business owner Gerald Holland.  Mr. Holland owns Carbon Connection, a bike shop located on Carlsbad Blvd., the “Main Street” in downtown Carlsbad, California.

Carbon Connection is a family-owned business employing three people and catering to the needs of not only local cyclists, but thanks to Internet sales, cyclists worldwide.

In fact, fifty percent of Carbon Connection’s sales are conducted online.

How do you think the so-called “Marketplace Fairness Act” would affect Mr. Holland’s business?

“I don’t have the time to implement it,” Mr. Holland says bluntly. “We’re a Main Street, brick and mortar business, and let me tell you, this thing hurts us directly.

“Listen, I’m sick and tired of all these taxes. I pay more than enough here in California, but now you’re telling me I have to comply with out-of-state tax codes too? No thanks, I’m sick and tired of it.”

Given the immense time requirement to comply with 9,600 various sales tax codes, I asked Mr. Holland how this bill would specifically harm his business.

“Our time is stretched thin enough as it is. We carry thousands of products, and the website needs updating constantly. I simply wouldn't be able to update the product listings quick enough in order to compete.”

Without the robust Internet sales Carbon Connection wisely taps into, Mr. Holland fears his business would be forced to close shop.

And Mr. Holland is not alone. Small, brick and mortar businesses across the country are speaking out against the National Internet Tax Mandate.

Unfortunately, this burdensome bill passed the Senate 69-27 earlier this year, but thanks to continued grassroots pressure, it faces a much tougher road in the House of Representatives.

However, that isn’t stopping House Judiciary Committee Chairman Bob Goodlatte (R-VA) from continuing to entertain this bill, nor is it deterring giant retailers like Amazon, Best Buy, and Wal-Mart from lobbying for its passage.

That’s why it’s urgent Campaign for Liberty members continue telling our Representatives to oppose the National Internet Tax Mandate.

Sign this petition, then contact your Representatives at 202-224-3121!

Tell them the Internet sales tax is bad for business.

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