Professor David Cadden offers insight on Amazon’s agreement to start collecting sales tax in Connecticut

caddenDavid Cadden, a professor in the Entrepreneurship and Strategy Department in the School of Business at Quinnipiac University, is available to comment on Amazon agreeing to collect sales tax in Connecticut, starting this November.

“Given the budget crises faced by more and more states and the fact that both houses of Congress pushed laws (Marketplace Fairness Act in the Senate, the Marketplace Equity Act in the House) that enable the taxation of online sales; it isn’t surprising that this occurred,” Cadden said. “In some cases, Amazon has stopped elements on its website that would trigger the need to collect sales tax. Elsewhere it has tough laws, but with other states – such as Connecticut – it has reached accommodations. Malloy fought for a state law requiring Amazon to pay taxes which Amazon strongly fought. The fact that the two parties have reconciled – in some way – is fascinating. Objectively, the state benefits from additional tax revenue, provides help to local retailers and it appears that it will provide additional employment in the state. At first look, it seems to be a ‘win-win’ for all, but the devil is always in the details. The nature of an Amazon facility that will be coming to Connecticut has not been covered in any details I’ve seen and the exact tax benefits to the state are unclear.”

To speak to Cadden, please John Morgan at 203-206-4449 (cell) or 203-582-5359 (office).

Categories: Hot Topics, School of Business and Engineering

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