Advocacy Report Measures the Impact of a Proposed Internet Sales Tax on Small Business

A report published by the Office of Advocacy analyzes the impact of an internet sales tax on small business.

As the popularity of online shopping has grown, states have seen their sales tax revenues drop. Federal legislation has been introduced over the past several years to authorize online sales tax collection. With small business owners on both sides of the issue, the Office of Advocacy recognized the need for objective research for small businesses and policymakers. This report analyzes the number of firms that will be affected by the small seller exemption (SSE) if current legislation passes and how much e-commerce is likely to be affected.

The report, An Analysis of Internet Sales Taxation and the Small Seller Exemption, was written by Donald Bruce and William F. Fox of the University of Tennessee’s Center for Business and Economic Research.


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