Unfair tax sends clear message: New York is closed for new businesses

Crain's New York Business reports:

For the second time in three years, Gov. Andrew Cuomo's executive budget proposes to force online marketplaces to collect sales tax from third-party sellers providing goods to New York buyers. That would be unprecedented.

While the governor has repeatedly claimed that New York is open for business and tried to position the Empire State as a leader in the internet economy, flawed proposals like this slam the door shut for new businesses—and the middle-class families who benefit from them.

Let’s be clear: This isn’t about closing loopholes, or fairness for any industry. It is a clear-cut cash grab that has no parallel in the offline world. It is akin to requiring the owner of a shopping mall to collect sales tax on behalf of the stores inside.

This year the state is looking to maximize revenue streams wherever it can. But forcing companies that do not buy or sell anything to become agents of the state charged with collecting and paying sales tax would be a crushing compliance burden that could have a crippling impact on new businesses.

Government greed in the news.