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MULTICHANNEL MERCHANT » ECOMMERCE » MARKETPLACE FAIRNESS ACT CLEARS MAJOR HURDLE
The Senate has set up a final vote on the Marketplace Fairness Act.
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The media is presenting the marketplace fairness act as a new tax that consumers are going to have to bear. This is not correct and is a misrepresentation of the truth. Consumers are required to pay sales tax on purchases they make online weather or not the e-tailer collects the sales tax. Consumers have the responsibility of reporting their online purchases to their state of residence and paying the sales tax annually on their state tax returns. If they are not doing so they are defrauding their state and breaking the law. Sales taxes that go uncollected by any given state because consumers of that state are not reporting their online purchases on their tax returns are causing us all to suffer in the form of reduced government services, like public school program, and public transportation. This is not a new sales tax this is simply ensuring that sales taxes are collected and paid to the states by businesses monthly rather than not being paid to the sates by consumers annually.
Additionally, the level playing field that the marketplace fairness act will create between brick & mortar stores and e-tailers will result in more local consumers purchasing in their own local stores which will be better for each local economy in many ways as opposed to local consumer dollars going out of state.
Also large e-tailers are often able to sell products for less on the internet because they do not have the burden of the overhead that comes from collecting state sales tax every month, reporting and filing on time, and paying penalties for not meeting states monthly filing deadlines. These costs are real costs and e-tailers don’t have this added overhead to date. Having to have the manpower, accounting software, bank accounts, and record keeping associated with sales tax collection and prompt remittance to the states will help to minimize retail price compression on the internet and again further level the playing field between Brick & mortar and e-tail.
How about we drop all sales taxes?
Think of what good to the economy and citizens if everything dropped 5,6,7,8% in price?
Talk about an even playing field….
This law is only about generating more government revenue.
How much more money does government need?
When does the ever increasing thirst for new revenue stop?