Today I had the the esteemed opportunity to represent you and the thousands of ebayers on eBay as well as the millions of small business owners on the internet through out the United States. Ebay gave a select group of ebayers the privilege to represent there state and lobby against the Streamlined Sales Tax Project (SSTP) or more commonly referred to as Remote Sales Tax.

Table of Contents:

1. What is SSTP and who does it affect?
2. Why SSTP Is Bad for Small Business?
3. eBay Point-of-View
4. BatteriesInAFlash Point-of-View
5. What Can I Do?
1. Contact your Congressmen and or women
2. Contact your Senator
6. How Our day went on "The Hill"

What is SSTP and who does it affect? ^top

The SSTP effects almost every eBay user, both sellers and buyers alike, and all small businesses on the internet that are based out of the United States. In 1992 The US Supreme Court decided in the Quill case that the states could not force remote sellers to collect sales taxes because of the tremendous compliance burden on remote seller. SSTP was created by the states to streamline the structure for collecting remote sales tax revenues. States do not have the authority to enforce the SSTP unless Congress passes enacting legislation. (US of Ebay information packet 2007)

Why SSTP Is Bad for Small Business? ^top

COMPLEX - The SSTP maintains a very complex sakes tax regime. In 1967, there were 3,500 different sales tax juridiction in the United States. Today, that number has risen to more that 7,600. Under SSTP, there could be as many as 15,000 taax rates across the country

COSTLY - Even SSTP supporters recognize that no small business can comply with the SSTP burdens on thier own. They will need to outsource the job to third-party contractors. That will add ongoing fees to already tight small business margins as well as potential new and ongoing hardware upgrades.

SMALL BUSINESS ARE PARTICULARLY VULNERABLE - The SSTP, as adopted by the states, lacks any "Small Business Exemptions" (SBE). Without effective small business protections, SSTP will "un-level" the playing field by favoring large businesses with the resources necessary to comply. Federal SSTP legislation must exempt small businesses to protect them from:

» tax-filling obligation across 45 states plus D.C.
» potential tax audits in 45 states plus D.C.
» costly fees to service providers and expensive systems upgrades to comply with 3rd party solutions
» the threat of ceasing operations or abandoning the Internet as a viable market (US of Ebay information packet 2007)

eBay Point-of-View ^top

eBay helps small businesses across America to success. More than 700,000 small businesses in the United States use eBay to reach customers across the country and around the world.

eBay opposes the SSTP in its current form. It would impose a major new tax burden on the Internet-enabled small businesses and their customers.

If Congress considers legislation relate to Internet sales taxes, eBay believes that protecting small business from new costs and burdens is critical. Without such protections, new business growth and job creation are at risk. (US of Ebay information packet 2007)

BatteriesInAFlash (My) Point-of-View ^top

BatteriesInAFlash opposes the Remote Sales Tax entirely and supports that if the bill were to be passed that it include a Robust Small Business Exemption were the definition of a on-line small business is determined by the Small Business Administration (SBA)

Due to the low cost associated with the Internet and Ebay, businesses are able to be started and given a fair chance to grow that otherwise would have never had the opportunity if these taxes and other cost were in place to begin with.

Businesses are able to start up with low start up capital and succeed and do not an accountant degree to handle there financial obligation.

What Can I Do? ^top

Don't be fooled by the intimidating presences of the Government Body and its' procedures. Before Ebay introduced us to the system and arranged for us to meet with our Congressmen and Senators for the Great State of Nevada, I had the same misconceived assumption too. You can contact your Congressmen and Senators and arrange a meeting to speak with them about your position on the issue and how it would directly affect you. I was surprised to find out how happy my Congressmen Jon C. Porter, Congresswoman Shelly Berkley, the staff of Senator Harry Reid and the staff of Senator John Ensign were eager to speak with us and listened to our thoughts and stories. I am including the links to help you contact your Congressmen(women) and Senators.

House of Representatives:
http://www.house.gov/house/MemberWWW_by_State.shtml#ut

United States Senate:
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state&Sort=ASC

Use these links to determine who represents you and how to get in contact with them. Your voice matters and must be heard.

How Our day went on "The Hill" ^top

BatteriesInAFlash joined by two of our local constitutes, an Ebay employee fluent on tax matters and several professional lobbyists lead the discussions with our Congressmen and women and our Senators. I would like to point out we were just four representatives of more than 35 other Ebay members representing 20 states who also spoke with there elected officials.

The day began with a meeting with Congressman Jon C. Porter. He listened intently to concerns and was up to speed on the matter at hand. He explained to us that he encourages small business growth and seemed to understand our position because he to owns a 10 year old small retail business. Congressmen Porter was a kind, personable man with a commanding personality. In my opinion I believe we have his support.

Follow his meeting, we moved on to a meeting with Jason Mulvihill of the Office of Senator John Ensign. Mr. Mulvihill explained to us that Senator Ensign was very aware of this issue as well as the The Internet Moratorium Bill which are not the same issues at all. He explained that Senator Ensign's position is there should be no taxes on the internet at all and the internet should be open and free for new innovations. While Mr. Mulvihill is not quite the same as meeting with Senator Ensign, I still believe that he was an intelligent, articulate individual who will brief our Senator thoroughly on our meeting. It is in my opinion that we will have Senator John Ensign's support.

Congresswomen Shelley Berkley was next on the agenda. She was a sweet women with a great sense of humor and a love for Nevada and the community. We began the meeting explaining our position which was soon followed by her simply saying, I am not aware of this bill at all and I apologize. Perhaps that may seem to be bad however being the first to instill the position of small business's of her district and seeing the impact this bill would have on us may have been a blessing. She would have no preconceived notions previous to our meeting and the opportunity to understand our side is very invaluable. Having no background on this matter, she asked very inquisitive questions that painted a picture for her. She stated that she would look more into this matter and that she didn't believe that passing a bill like seemed to be a good idea due to the overwhelming tax burden it would impose on small business. Overall I believe we have the support of Congresswomen Shelley Berkley.

Last but not least, we met with George Holman of the Office of Senator Majority Leader Harry Reid. After stating our position, George was vaguely familiar of the SSTP and replied that this was a good time to have come to Washington D.C. due to expiration of The Internet Moratorium that will expire on November 1, 2007. George stated Senator Reid had voted against the SSTP last time and couldn't see how his position would have changed. He then added, he could not recall having discussed the matter with Senator Reid however if this were to come across his desk again he would reflect on his notes of our meeting and Senator Reid would be briefed promptly. George was the youngest in the room, however, this had no relevance because of the intelligence and maturity he portrayed. I believe we will have the support of Senator Reid.

Information Excerpts were obtained from he eBay 2007 SSTP Booklet from the Government Relations Department