The streamlined sales tax likely to affect all American businesses

The impact of the Streamlined Sales Tax Project will clearly be positive, because the business community as a whole stands to gain from any simplification as compliance cost and audit exposure diminish. On the other hand, certain simplification features could increase some business' tax expense and negatively affect their pricing and margins, while other businesses could experience the opposite effect. An examination of the recommendations adopted by the Project since its inception in March 2000 provides insight into how simplification has evolved from an insular retailer's issue to one that could impact all businesses. The simplification recommendations that businesses should not overlook include the use of simplification to increase the tax base, access to technology, defining simplification, changes to the political process, vendor compensation, and the possible extension any new sales and use tax nexus standards to business activities taxes.