Email from ebay

[Awaz]

Did anyone else got an email from ebay to support no tax for online business? What are your thoughts? Please do not make this into Obama this Obama that...republican this or that...democrate this or that. Obviously, this is retail corporation lobying. In general, I support what ebay is trying to do, but there are some parts in there that support taxation of online business beyond certain threshold (revenue/profit).

RE: Please Protect Small Business

As your constituent, I ask that you oppose the Marketplace Fairness Act (S. 336/H.R.684). As currently written, the bill will hurt small online businesses. Before any changes are made to Internet sales tax policy, more scrutiny is needed to ensure small businesses are treated fairly, that they are encouraged to grow and continue creating jobs for our economy, and that consumers can benefit from the value and selection that healthy competition provides.

A real small business exemption is needed in any Internet sales tax legislation. That’s not the case in the current bill. I support an Internet sales tax exemption for small businesses with less than 50 employees or less than $10 million in annual out-of-state sales. That’s equivalent to the amount of sales generated by a big, national online retailer such as Amazon in only 90 minutes. That’s a reasonable approach to protect jobs and fuel our economy. But so far, proponents of the current bill have refused to consider a fair and reasonable exemption similar to robust small business exemptions already provided by federal legislation on other issues.

Currently, small businesses collect and remit sales taxes for purchases made in states where they have a physical presence. This makes sense because it means that small businesses are paying for the government services they use and they are treated the same as offline small business retailers that only collect in one state.

Under the Marketplace Fairness Act, however, small businesses would have the same tax obligations as multi-billion-dollar retailers who have a physical presence nationally and use government services in many local tax jurisdictions. I am concerned because the bill also gives tax collectors in every state unprecedented authority to threaten out-of-state small businesses with costly audits and unnecessary litigation. Tax collection software does not solve this issue for small businesses, nor does it guard against the significant liability issues small businesses could face.

Small online businesses should not be saddled with new tax burdens. Everyone benefits from Internet-enabled small businesses. Unfortunately, current Internet sales tax legislation will make these businesses less competitive against big national retailers who use government services nationwide and have the resources to collect sales taxes everywhere. I am concerned that this current bill may shut down small online businesses, costing jobs and reducing competition that benefits consumers.

Please speak up and oppose the Marketplace Fairness Act. Make sure any Internet sales tax legislation fairly protects small businesses, the jobs they create and the consumer benefits they provide. Legislation should support small businesses, not put them out of business.

[jim_de_hunter]

I think what I heard on NPR yesterday is that a bill near Congress will make businesses with gross sales greater than $1,000,000 per year collect sales tax and then remit the sales tax for the buyers taxing agency.  Talking heads disagree on the cost and ease of compliance for the businesses in question.

[Mettler1]

  I buy a lot from Tiger Direct in Chicago and it would be nice if my state (Mi) got they're share. We're talking huge amount of $$$$ my state does not get.

[Son of Pappy]

  I buy a lot from Tiger Direct in Chicago and it would be nice if my state (Mi) got they're share. We're talking huge amount of $$$$ my state does not get.

Supply and demand?  Competitive based pricing.  I want the product that best suits my needs at the lowest price point posible.  If an outfit charges too much they lose sales, if they charge too little they close their doors.  To tell a buisness that they must pay anothers state tax is in my opinion criminal and in direct conflict with the COTUS.  Think UPS is in trouble now?

[VirginiaJim]

Amazon will be collecting tax for VA this coming September, I think.  I use Amazon for a good 90% of all my purchases.  Will I stop buying from them because of this?  It all depends on the total price.  I have Price Blink installed in my browser.  www.priceblink.com  I use this to comparison shop so whomever has the lowest price including shipping wins, regardless of the tax factor.  If they all tax then it doesn't make any difference.  Enjoy the tax free purchases while you can.  I fully expect something to happen which will tax all Internet purchases within the next five years.  Wouldn't be surprised at all if a national sales tax  comes into the picture as well at some point.  It is what it will be.  Not going to get upset about it.

[gPink]

A national sales tax would be interesting to debate if it included a repeal of the income tax.

[Son of Pappy]

A national sales tax would be interesting to debate if it included a repeal of the income tax.

That is an idea I can live with.  But the problem is obvious......