Gregory Karp’s “Illinois Sales Tax Rates Vary by Online Retailer” (News, Sept. 2) does a good job illuminating the convoluted mess that is Illinois’ current sales tax rate system.
What if fails to do is analyze the impact that such a confusing system has on Illinois businesses.
When Gov. Pat Quinn signed into law a bill that mandated online retailers, such as Amazon, pay Illinois sales tax if their affiliates resided in Illinois, the repercussions were felt immediately. Instead of generating more tax revenue, it instead caused internet affiliate businesses like FatWallet to flee the state due to Amazon’s threats to cut ties with them. This unintended result — fleeing businesses — means that a law proposed to “even the playing field” between brick-and-mortar stores and online retailers actually worsened the business climate in Illinois.
Quinn and the legislature should take a hard look at the Illinois tax code, and work to make it both fair and equitable for all Illinois businesses. Consistency is key, and in a state where the sales tax on an online purchase ranges from zero to ten percent, consistency simply does not exist. Illinois needs a statewide sales tax that applies to all businesses that operate within the state. Let’s ask our government to work on fixing a broken system, instead of concentrating on the symptoms.
— Brian Littleton, Owner, ShareASale.com, Chicago
