|EcommerceBytes-NewsFlash, Number 2949 - December 04, 2012 - ISSN 1539-5065 4 of 4|
eBay CEO John Donahoe issued a statement urging the President and Congress to work together to avoid the economic "fiscal cliff," which refers to the effect of a number of laws which, if unchanged, would result in huge automatic tax increases and massive cuts to federal spending with a corresponding reduction in the budget deficit beginning in 2013.
President Obama's top economic advisors issued a report on the impact of the fiscal cliff late last month. They warned that a set of across-the-board tax increases set to take effect in January would result in consumer spending of $200 billion lower than projected levels for 2013, calling it a blow to the economy that would likely hit all sectors of the retail industry.
eBay's CEO, whose wife Eileen Donahoe was appointed by President Obama as the United States Ambassador to the United Nations Human Rights Council, expressed concern over the impact of inaction during the biggest shopping season of the year, and was one of many in the retail industry concerned about the issue.
The National Retail Federation's CEO Michael Shay has also been speaking out about the potential negative impact of the fiscal cliff. In mid-November, Shay said the automatic tax increases and spending cuts set to take effect at the end of the year could have more of an impact on business confidence and consumer spending than any other issue. "It's imperative that policymakers address the looming fiscal cliff now to give consumers some certainty heading into the holiday shopping season."
eBay CEO John Donahoe's statement about the fiscal cliff follows:
"Before the end of the year, Washington needs to find an agreement to avoid the fiscal cliff. We are pleased that the President and the Congressional leadership appear committed to coming together to solve this critical issue.
"In many ways eBay entrepreneurs and shoppers are at the heart of this challenge. They are shopping for the holidays and serving their customers during the holiday season. They do not need uncertainty over a possible middle class tax increase.
"The need for certainty is especially important for small businesses and entrepreneurs like the many small business sellers on eBay. If the White House and Congress can reach agreement, it will reassure entrepreneurs and technology-enabled small business that our nation's leaders can come together and address big issues.
"We encourage the White House and Congress to work together on an approach that includes additional revenue, comprehensive tax reform and protection for all small businesses that use the Internet from new tax burdens, and spending cuts, including entitlement reforms, to get our fiscal house in order while fostering economic growth."
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About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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