Columnist Andrew Leahey says state and federal governments should collaborate to help modernize sales tax systems and ease the burdens on small busine

We Need a Uniform State Sales Tax System That Supports Commerce

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2024-10-22 13:30:18

Columnist Andrew Leahey says state and federal governments should collaborate to help modernize sales tax systems and ease the burdens on small businesses.

A recent proposal asking Congress to set uniform state sales tax policies has sparked controversy, but it gets more right than wrong. With more than 13,000 distinct sales tax jurisdictions in the US, small businesses face huge compliance challenges that fuel an industry around sales tax calculation and services.

The current system burdens remote sellers. We need a clear path forward that safeguards state rights and is both simple and uniform. A collaborative approach can balance federal authority to regulate interstate commerce with incentives for states to modernize their systems.

Sen. Maggie Hassan’s (D-N.H.) proposal that Congress step in to standardize sales tax policies has caused some backlash—especially from state lawmakers and local tax authorities that would see their policymaking influence constrained.

But the realities that small businesses and remote sellers face under the current system merit equal consideration with state autonomy.