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Benefits for States Entities:
Every state in the country would benefit by encouraging their merchants to enroll in the Pay My TaxesTM sales tax escrow program. States would benefit from increased cash flow resulting from guaranteed, on-time payments for merchant's state sales tax obligations. In today's environment, many merchants designate tax obligations as a low priority, resulting in late payments and even non-payments. The Pay My Taxes™ program remedies this dilemma. Additionally, the Pay My Taxes™ Program potentially:
- Encourages sales tax payment compliance by small and medium-sized businesses.
- Increases sales tax revenue stability and predictability.
- Reduces volatility and hoarding common during economic downturns when cash flow is tighter.
- Increases sales tax revenue over time through more accurate reporting and decreased sales tax avoidance.
- Reduces delinquencies and business shutdowns.
- Increases sales tax revenue from a potentially higher rate of growth as more businesses concentrate on product sales rather than on sales tax accounting, record keeping, and litigation.
- Increases sales tax revenue as it encourages long-term economic growth and jobs.
- Increases revenue through better interstate business compliance by reducing business interstate tax shifting actions to lower and avoid tax liability.
- Encourages further innovations and efficiency improvements in sales tax collection systems.
- Reduces compliance costs and allows staff to work on more innovative and productive projects.
- Reduces state court system costs and reduces caseloads for a more efficient legal system.
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