Letters to the Editor

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TAXES: Internet tax will hurt businesses

Letter by Gene Harvey, Puyallup on May 7, 2013 at 4:01 pm | No Comments »
May 8, 2013 10:01 am

Senate Majority Leader Harry Reid rushed legislation through the Senate requiring Internet businesses to pay state sales taxes (TNT, 5-7). Reid’s action is astonishing due to its unfavorable effect on small businesses, the cornerstone of our economic well-being.

The speed of his action, in this regard, is in stark contrast with his continued refusal for many months to bring 20-plus pieces of House legislation, generally friendlier to free-enterprise capitalism, up for a vote.

The beehive of energy that free enterprise capitalism provides is generated by small business, which promotes creativity and innovation. These enterprises significantly improve the rate of meaningful employment as new employees are needed to fulfill the increasing expansion of service.

In today’s economy, big business has learned to depend on government benefits to increase their profits. This is known as “crony capitalism.” Companies like Amazon, Target, Walmart, etc., welcome taxes being imposed on small businesses because it eliminates the innovative competition for which smaller companies are responsible.

Larger companies already pay local and state taxes due to their multiple locations throughout the country, so this legislation possesses no significant threat to them. They can afford the administrative costs of managing the 96,000 or so local taxing districts requirements in the U.S. – something that small businesses can’t afford, even if they are profitable.

Competition breeds innovation while “safe sailing” in organizations often leads to interior “dry rot” where maintenance of the status-quo trumps creativity. If passed into law, this legislation will damage meaningful job creation.

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