By Jay Heflin - 07/08/10 01:57 PM EDT
"Given the current economy, it would be unfair and unwise to burden online vendors with the task of sorting through the policies of thousands of taxing authorities around the country and serving as revenue collection agencies for each of them," said Ed Black, the organization's president and CEO, in prepared remarks. "Many mom-and-pop businesses could not afford the tax attorneys and CPAs that would be needed to comply with that many different state and local tax laws and would just close their business."
Opposition from the CCIA comes after eBay, Hotels.com and TravelersFirst.org also came out against the measure, which they say will hurt economic growth.
Hotels.com and TravelersFirst.org are pushing for passage of the Internet Travel Tax Freedom Act, which would protect online travel agencies from complying with the often conflicting policies of the country's 7,000 local tax authorities.
"An affordable vacation is a much-needed release for the millions of hard-working Americans who have relied on 'staycations' during the economic downturn," said Victor Owens, vice president of North American marketing for Hotels.com, in prepared remarks. "New legislation would make a vacation more difficult, if not impossible, by raising lodging taxes and raising room rates."
The CCIA called on Congress to streamline local tax rates.
"Since the [legislation] has yet to sufficiently streamline the rules for the different taxing jurisdictions, taxing online sales at this time would negatively impact the continuing development of ecommerce and the new economy," Black said, adding, "It is counterproductive to add to the administrative burdens of small businesses at the very moment we need them to provide jobs and lead our economic recovery."