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SearchGovenor Ritter = Bad for Colorado
Currently there are several bills making their way through the Colorado House and Senate – on behalf of Govenor Ritter. I am especially referring to HB1192 and HB1193. Businesses all across Colorado will be affected if these bills get signed into law. And while they might eventually provide a short-term increase in tax revenue for the state, the mid-term and long-term impact of these bills is significantly different. These 2 bills alone will drive businesses out of the state – taking with them tax revenue and highly skilled workers with higher incomes.
Bill HB1193 is about online sales tax and affects many small businesses who make money from online advertising – especially through the so-called affiliate programs. Amazon.com, Overstock.com and many other large companies already mentioned that they will cease operation with business partners in Colorado if HB1193 is signed into law.I know people who will lose 80%-90% of their income if this bill goes into affect. The impact of entire businesses being wiped out is much bigger than the amount of sales the governor anticipates to make. Similar laws have been successfully defeated in many other states where politicians recognized the damage a bill like this would create.
Bill HB1192 is aimed at software purchase made through businesses. Any software bought online will be taxable and it pretty much affects nearly every business in Colorado. It starts with buying Anti-Virus software to protect a computer and it does not end with businesses purchases of operating systems, database software packages, or accounting software like Quicken. This tax will add a huge burden on local businesses and a significant cost for any business in Colorado.
Govenor Ritter clearly shows no financial understanding whatsoever. A short-term budget fix will create much bigger holes down the road. These taxes also come at a wrong time when Colorado depends on businesses to create jobs and income for the state. These bills will hurt Colorado more than they will help and it does not take a financial genius to understand it. However, Govenor Ritter is obsessed with getting these items into the books.
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