A recent Gallup poll reveals an undisputable fact: Despite its popularity, many Americans – especially millennials – oppose a new Internet sales tax system enabled by the Marketplace Fairness Act. The bill, currently under Congressional consideration, will require online retailers to collect and remit sales tax for all 46 state-taxing jurisdictions.
According to the poll of 1,000 Americans, between 57 and 69 percent said they would “vote against a law that would allow each state to collect sales taxes on purchases its residents make over the Internet.” Opposition is even stronger among millennials with 73 percent opposed to an Internet sales tax while 27 percent were in favor.
Another compelling find from the data set is that 60 percent of people making less than $60,000 are opposed to a new Internet sales tax system.
While the Gallup poll didn’t strongly show the reasons behind the public’s opposition, a recent Zogby Analytics poll commissioned by TruST in March did. The research found that of likely American voters:
• 52 percent said shifting this tax-collecting responsibility to businesses would be burdensome on companies
• 61 percent revealed they do not trust that states will make their tax systems easier, and believe that requiring businesses to file in multiple states adds complexity and bureaucracy to businesses that are already overburdened with paperwork
Consumers understand and fear that many businesses may stop selling products and reduce customer choice if required to comply with 46 different taxing authorities and hundreds of tribal organizations.
They also are smart enough to not take at face value promises that states will implement a simple Internet tax system if left to their own devices.
Hopefully these sentiments carry through to the halls of Congress and lawmakers reject any Internet tax system that introduces burdensome complexity on consumers and businesses.