Small Businesses utilizing the internet for productivity, generating revenue and reaching new clients, will be negatively impacted by “New Sales Tax.” This will also lead them having a hard time competing against big retail businesses. This new sales tax is not quite “new”. It is new to the infinite number of businesses that utilize the internet to empower themselves, not only locally, but nationally and globally. For instance, one company that utilizes the internet is, Amazon.com. They were audited by the Texas State Comptroller for not filling the sales tax Form 01-117 (Texas State Comptroller of Accountant, 2014). Amazon stated that the completion of Form 01-117 was not required by their company because they did not have a physical presence in the State of Texas. But yet, they had a distribution center located in Dallas, Texas. Due to not complying in filling their returns, States lost out collecting their sales tax.() …show more content…
One way is that, it will affect their productivity by increasing their prices. This will hold back all small businesses from being able to compete with big businesses. For example, 2 for 1 BOGO sale, small businesses would not be able to promote a sale like this. The small businesses will have to raise their prices because the price of their productivity has now sky-rocketed, which will make promoting a sale, a loss for the business. While, in the case for big businesses, this will not impact them because they have the means to afford their productivity at any