Wall Street Journal Publishes Greco's Letter: 'Internet Sales Tax Is a Bad Idea'

May 5, 2008 — The Wall Street Journal on Saturday, May 3 published a letter to the editor that Direct Marketing Association President & CEO John A. Greco, Jr. sent regarding the Journal’s Thursday, May 1 editorial on New York State’s new tax law, which DMA has opposed since it was first introduced last fall.

The full text of Mr. Greco’s letter to the Journal’s editor follows.

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Internet Sales Tax Is a Bad Idea

Dear Editor:

I commend the Journal for addressing New York Gov. David Paterson’s recent decision to sign into law a bill that will require out-of-state online retailers to begin collecting state and local sales taxes (“Return of the Web Tax,” Reviews & Outlook, May 1).

You highlight several important issues, not the least of which is that the provision will have significant ramifications for small businesses and consumers who shop over the Internet. Moreover, as the article notes, New York is likely to become the biggest loser of all when it comes to tax competitiveness.

The Direct Marketing Association (DMA) has fought aggressively against the measure since it was first introduced by Gov. Paterson’s predecessor last fall because we believe it is an unabashed attempt by New York State government to expand the reach of its tax system across state borders to businesses which have no physical presence in the state. Although the legislation has now been signed into law, we continue to strongly oppose the measure and are currently exploring ways to fight it. We applaud the Journal for tackling this issue and defending the small businesses and consumers who will be impacted by this short-sighted proposal.

Sincerely,

John A. Greco, Jr.

President and CEO

Direct Marketing Association

New York

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