Performance Marketing Association Opposes Proposed Connecticut "Tax Scheme"

Apr 27, 2011, 11:32 ET from Performance Marketing Association

HARTFORD, Conn., April 27, 2011 /PRNewswire/ -- Internet advertising businesses converged on the Connecticut capitol today to oppose the "affiliate nexus" tax proposed by Governor Malloy and House Bill 6624.

Over a dozen Connecticut-based Internet advertising businesses will meet with policymakers to explain the destructive effects the law would have on their businesses and to show the human costs that this well-publicized tax would have on their livelihoods.  The meetings have been organized by the Performance Marketing Association, a not-for-profit trade association representing nearly 3,000 Internet advertising businesses in Connecticut and over 200,000 nationwide.

Connecticut boasts nearly 3,000 Internet advertising businesses that last year earned $236 million.  In turn, they paid over $7 million in state income tax and contributed millions of dollars back into the Connecticut economy through employment and business taxes and fees, property taxes and sales taxes.

"The 'affiliate nexus tax scheme' contained in HB 6624 will devastate a vibrant and growing small business segment in Connecticut," said Rebecca Madigan, Executive Director of Performance Marketing Association.  "In today's economy, elected officials should be focused on creating jobs, not harming small businesses and entrepreneurs who earn money from advertising.  To add insult to injury, this short-sighted legislation will create no new revenue for the state.

"Governor Malloy must realize the real costs that this proposal would have on his state. Why would a sitting Governor propose a law he knows would hurt his state? Out-of-state retailers will simply stop advertising on websites owned by Connecticut citizens and, instead, will advertise on competitors' sites in other states.  When that happens, these 3,000 small businesses will see a 25%-35% loss of income, which translates into layoffs, unemployment, and businesses moving out of state," said Ms. Madigan.

"While Internet sales taxes ultimately require a national solution, Governor Malloy should understand that there are other, more constructive ways to send a message to Congress. When similar laws passed in New York, North Carolina, Rhode Island and Illinois, the ultimate result was no new sales tax revenue.  Connecticut should say 'no' to this nexus tax scheme – the only thing it accomplishes is heartache for Connecticut businesses," concluded Ms. Madigan.

About the PMA

The Performance Marketing Association (PMA) is a not-for-profit trade association founded in 2008 to connect, inform and advocate on behalf of performance marketing, a multi-billion-dollar marketing channel that which comprises more than 200,000 businesses and individuals.  Continued growth of the performance marketing space is expected as advertisers, facing small budgets and big expectations, increasingly look to performance-based marketing initiatives to expand their business.  Additional information is available at:


Rebecca Madigan

Executive Director | Performance Marketing Association

Mobile: 805.469.1496


SOURCE Performance Marketing Association