In a Tax Day article from CNET, NetChoice Executive Director Steve DelBianco identifies some of the serious problem with the so-called Simplified Sales Tax Program:
“The states are desperate for new revenue and I think they realize they’re straying far from the simplification they originally promised,” said Steve DelBianco, executive director of NetChoice, which counts as members AOL, eBay, NewsCorp, Oracle, Verisign, and Yahoo. “That creates an urgency on their part–to get the federal mandate before it becomes clear they have no intention to simplify.”
“They have no real intention of simplifying or compensating sellers for the burdens of collecting,” DelBianco said. “It’s a shell game.”
Among his complaints: That states are unwilling to compensate sellers for the burden of sales tax collection; that small businesses with minimal sales should be exempt; that only one state (as opposed to all states) should be able to audit a business; that participating states are not paying attention to the idea of simplification and are actually making definitions more complex.
“There has to be some oversight,” DelBianco said. “These guys have demonstrated–the streamlined states have demonstrated — an inability to stick to the streamlined promise. Only the US Congress is going to be able to protect sellers from unreasonable burdens.”