Businesses react to Internet sales tax proposal

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(Host) The president of one of Vermont’s largest direct marketing companies doesn’t like the idea of collecting more taxes from catalog and online sales.

Jim Feinson of Gardeners Supply says the tax will hurt, rather than help, the state’s economy. Feinson says Vermont has a relatively high number of people working in the direct marketing business. He says those firms will lose money under the tax plan because it would make their goods more expensive.

(Feinson) “I believe our state is one of the highest in terms of residents that are employed in the direct marketing industry. Our state is very reliant on the success of direct marketing companies. This is a proposal that makes direct marketing sales less competitive. Really what it’s going to do is it’s going to hurt businesses like our business and Orvis and Vermont Country Store and King Arthur Flour.”

(Host) Feinson says taxing online and catalog purchases will also hurt rural Vermonters who don’t have access to large retail centers, and do much of their shopping on the Internet or through the mail.

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