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November 19, 2013

Obama admin using taxpayer dollars to advocate for a tax increase

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Today I became aware that the Small Business Administration (SBA) is using taxpayer dollars to campaign for an unconstitutional tax increase, the Marketplace Fairness Act.

Yes, your Small Business Administration, which you fund with your tax dollars, is advocating and trying to build public support to pass legislation that would implement new taxes on the Internet.

They funded a study by the very folks who are advocating the new taxes, with your tax dollars. And now they're funding a social media campaign, again, with your tax dollars, to implement an unconstitutional tax on the Internet.

This is wrong. I'll be doing a separate blog on what is wrong with the study itself, because it's so bad it deserves separate treatment.

See for yourself. Here's the email, verbatim, unedited (except that the links in the email are not live in this text). And for now, at least, I'm removing the email list that this was sent to.

From: "Gulbrandsen, Erik M." <>
Date: November 19, 2013 at 1:22:57 PM EST
Cc: "Patout, Eleanor O." <>
Subject: Advocacy Twitter Campaign for Internet Sales Tax Report Roll Out
Dear Small Business Friends,

Today, we are releasing our report, An Analysis of Internet Sales Taxation and the Small Seller Exemption.  We would love to get your help spreading the word about this valuable report.  Below you will find some sample tweets to use throughout the week.

Please let me know if you have any questions, and as always, feel free to re-tweet our tweets on the report and our FactoftheDay.


Sample Tweets for Advocacy Report on Tax Expenditures :

  • To tax or not to tax?  That is the question.  @AdvocacySBA releases study on internet sales tax and #smallbizonline 
  • Do you agree with an SSE? @AdvocacySBA study looks into internet sales taxation and #smallbizonline retailers 
  • Marketplace Fairness Act includes $1 M threshold for SSE @AdvocacySBA study 
  • @AdvocacySBA study estimates only a very small # of #biz would actually be required to collect sales taxes with SSE. 
  • As little as 1,817 online retailers could collect sales tax with the MFA using $1 M SSE threshold. 
  • #MarketplaceFairnessAct would only apply to less than 2% of online retailers 
  • #MarketplaceFairnessAct would only apply to less than two-tenths of one percent of all online sellers 
  • 1800+ online retailers with sales >$1M=Majority of e-commerce in dollars.  See @AdvocacySBA study 
  • <1% online retailers have sales > $1 M, but make up the majority of online sales. 
  • Lowering $1M SSE would include more #onlineretailers, but not add much to overall e-commerce dollar total 
  • ~57.3% of total U.S. e-commerce retail takes place among the largest companies with sales of at least $1 M 
  • Yes or no?  SSE provision would reduce administrative burdens on #smallbizonline and reduce potential revenue gains. 
  • Median state levies a 6% sales tax.  What could online sales bring?  See @AdvocacySBA study 
  • Online sales in ‘98 = ZERO… Online sales in ‘11= $4.1 Trillion…Check out @AdvocacySBA Study on Internet Sales Taxation and #smallbizonline 
  • Still using catalogs? Online retail rose 20.4% annually from 2000 to 2011 
  • Santa will be receiving online wish lists instead of circled catalogs. Online retail on the rise.  What about online sales tax? 
  • Reduce the SSE? Moving threshold to $500K almost doubles participants, but does not add a lot to total online retail amount. 
  • What is SSE?  Find out in @AdvocacySBA new study. 
  • Internet sales taxation on #smallbizonline.  @AdvocacySBA study dives deeper into the issue. 
  • Holiday shopping online?  What about online sales taxes? Advocacy study looks at #smallbiz online taxation 
  • Holiday gifts to purchase?  Online or brick and mortar?  Sales tax or no sales tax? @AdvocacySBA analyzes #online sales tax and #smallbiz 
  • What does #smallsellerexemption mean for online sales taxation?  Find out @AdvocacySBA 
  • Would SSE quell business growth for #smallbizonline? Find out @AdvocacySBA 

Erik Gulbrandsen | Special Assistant to the Chief Counsel for Advocacy | SBA Office of Advocacy | 409 3rd St. SW, Washington, DC 20416 |
p 202/205-7990 | f 202/481-4233 |  website | News | Research | Regulation |  blog | Facebook |  twitter |

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