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Posts Tagged ‘sst’

Streamlined Sales Tax May Destroy Level Playing Field

Tuesday, December 18th, 2007

barb.jpg It was bad enough when a large brick-and-mortar retailer told members of Congress at last week’s hearing on Streamlined Sales Tax (SST) that online retailers have an unfair advantage over companies like his. Indeed, the entire argument surrounding SST is one of evenhandedness across selling channels. The debate is complex and often touches on seemingly contradictory or ambiguous points. But what really floored me was when a Congressman in support of this retailer’s testimony remarked that he missed the days when he could walk into a store and yep, you guessed it, “everyone knew his name.”

If Congress is really concerned about a level playing field, then perhaps they should recognize that the Internet allows that small main street retailer to compete against the larger retailers through direct-to-consumer tools. Electronic retailers use these tools to create a conversation with their customers. In fact, when I log onto my skin care provider’s site, they greet me by name, know my preferences and assist me in learning about products relevant to my skin. Now that Congressman harkens back to the old days when a retailer knew their customer on a first-name basis; today the Internet provides this experience.

As technology permits a myriad of consumer shopping options, and if the argument is that remote retailers should collect sales tax to level the playing field, then I encourage Congress to ensure that Internet retailers have unfettered access to their consumers with a free and open Internet. But that’s another posting…

-Barbara Tulipane, ERA president and CEO