Marketplace Fairness Act is Unfair—Internet Sales Tax Sucks

May 13th, 2013

The Senate approved a long-anticipated Internet sales tax proposal on Monday moving that legislation one step closer to passage and paving the way for shoppers to pay sales tax on the majority of online purchases.

The so-called Marketplace Fairness Act (which is anything but fair) would allow the forty-five states (and the District of Columbia) that currently charge sales tax to require large online retailers to collect tax on purchases made by their residents.  The law would only apply to online sellers that have sales of at least $1 million outside of states where they have physical operations, like a store or warehouse.

The Senate voted 69-27 for passage with bipartisan support.  Before it can achieve final passage, it must go to the House of Representatives where Republicans are currently split on the issue.

Let’s hope the Republicans stand up for the entrepreneurs with online businesses.  This group of businessmen represents the last great frontier that isn’t taxed to death.  Enactment of this law will do nothing but beat down small businesses trying to make it online.

Interestingly, many of these businesses are comprised of women trying to raise families and work from home or individuals laid off from traditional businesses looking for a way to launch new careers.

In the current business environment, they represent David versus the Goliath that is the big box retailer pushing for this law.  Big box stores want to bury opportunity for a duty free Internet so they can monopolize the marketplace even more.

Sure, all we need are more Walmarts selling cheap crappy Chinese products while putting these entrepreneurs out of business.

No, we need a place where small businesses can thrive and the Internet is an exciting place to do just that.  Meanwhile, the Democrat Senate is chomping at the bit figuring out yet another way to collect taxes.

This is a bad bill where the little guy gets screwed again.

Stand up for the little guy.  Support these hard working entrepreneurs.  Call Congress and tell them to vote no on this terrible law.