Small Business Owner Tells Ayotte Proposed Online Sales Tax Would Have Blocked Growth

Press Release

At this morning's Senate Small Business Committee hearing, U.S. Senator Kelly Ayotte (R-NH) spoke with small business owners from around the country about their problems with tax compliance and the proposed online sales tax.

Ayotte asked Ms. Cori O'Steen, owner of UPakNShip in Aiken, South Carolina, whether she would have started her online business if there was possibility of being audited by nearly 10,000 tax jurisdictions, set forth by an online sales tax. In response to Ayotte's question, Ms. O'Steen said: "Definitely not. I would have maybe continued to do what I was doing - selling stuff around the house on eBay...But if I had to have that kind of tax compliance, I wouldn't have started my own website. It would've been too overwhelming a thought. It's like a whole new taxation agency. It's like a secondary IRS, is what it's seeming like to me, which is to me just threatening and [something] I wouldn't want to open myself up to."

"As we look at this so-called Marketplace Fairness Act - It's really a money-grab from Washington to allow other states to require states like mine - who've made a choice to be competitive by not having a sales tax - to require our businesses to become the tax collectors for the nation," Ayotte said. "You know what's so unbelievable about this proposal is that they're asking small businesses like you... to be the tax collectors and to take on that role for nearly 10,000 jurisdictions."

Ayotte has led the congressional opposition to the misnamed "Marketplace Fairness Act," which would require Internet businesses to collect sales taxes for nearly 10,000 jurisdictions across the country. She has also heard from numerous New Hampshire businesses who oppose the Marketplace Fairness Act, including Noble-Spirit in Pittsfield; Rapid Group in Nashua; KIRK Communications in Portsmouth; E&R Laundry and Dry Cleaners in Manchester; Frederick's Pastries in Nashua; Mt. Cube Sugar Farm in Orford; Maine-ly New Hampshire in Portsmouth; Whaddy.com in Nashua; CB Gitty Crafter Supply in Barrington; Polaris Direct in Hooksett; and TradePort USA in Somersworth.

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