Internet tax bill would hurt business
Gov. Pat Quinn’s announcement that he has formed an Innovation Council to boost the state’s economy and “create the jobs of today and tomorrow right here in Illinois” is good news. As that panel begins its work, the governor can keep thousands of innovative jobs in Illinois right now by vetoing a misguided bill on his desk that would force online retailers to collect sales tax from Internet shoppers in Illinois.
If the bill becomes law, it would cost far more than the benefits it allegedly would produce. States that have imposed a similar structure have lost more than they hoped to gain, and some have already moved to repeal the legislation. The bill is aimed directly at companies like mine, CouponCabin.com, which I founded in 2003. We plan to double our 50-person staff in 2011, and it’s our intention to continue that growth in the years ahead. But the so-called Internet affiliate tax bill threatens those plans as well as the 24 high-paying jobs we are currently trying to fill.
Corporate customers like Amazon.com and Overstock.com have told me that if the bill becomes law, they will cancel our contracts and not do business with my company and others like mine in Illinois. If that happens, current and new jobs at my company would be lost or move to another state.
We applaud the governor’s commitment to develop an innovative economy in Illinois and are ready to work with him to develop a fair tax-collection structure that promotes a level playing field between online and traditional retailers.
Scott Kluth, CEO
CouponCabin
Chicago