I received this email from ebay this morning. I think that ebay is on the wrong side of this issue.
I was in retail for many years and struggled with sales tax issues at every turn. “Struggle” is putting it mildly as at one point the NY State government came after me with guns a blaring. I have no love lost on sales tax but not because of those struggles but because it is an intrinsically regressive tax that hits poor people more than it hits the wealthy AND it puts the small business in the middle of tax collection and compliance. That being said it is a reality of the current day tax structure.
If you assume that it is reality and it is going to be then the question should be how to make it as fair, easy and equitable as possible for ALL businesses. As it currently stands it is none of those things. And it is an issue that affects all bricks and mortar retail businesses big and small. There should not be artificial product pricing variations in the market created by sales tax policy.
ebay should either be promoting alternative, more progressive taxation or promoting making this tax fair and simple. Advocating exemptions for certain businesses or sales volumes,as ebay does, only makes the sales tax more complicated, not less. At its best it then appears to be position that seems to be very self serving and not in the interest of all small businesses.
|Dear Mike,Congress is considering online sales tax legislation that is wrongheaded and unfair, and I am writing to ask for your help in telling Congress “No!” to new sales taxes and burdens for small businesses.Whether you’re a consumer who loves the incredible selection and value that small businesses provide online, or a small-business seller who relies on the Internet for your livelihood, this legislation potentially affects you. For consumers, it means more money out of your pocket when you shop online from your favorite seller or small business shop owner. For small business sellers, it means you would be required to collect sales taxes nationwide from the more than 9,600 tax jurisdictions across the U.S. You also would face the prospect of being audited by out-of-state tax collectors. That’s just wrong, and an unnecessary burden on you.Big national retailers are aggressively lobbying Congress to pass online sales tax legislation to “level the playing field” with Amazon. And, as they compete with big retail, Amazon is advocating for this legislation too, while at the same time they are seeking local tax exemptions across the country to build warehouses. This is a “big retail battle” in which small businesses and consumers have a lot to lose. But eBay is fighting, as we have for more than 15 years, to protect small online businesses and sellers and ensure healthy competition, value, and selection that benefit consumers online.
The solution is simple: if Congress passes online sales tax legislation, we believe small businesses with less than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the burden of collecting sales taxes nationwide. To put that in perspective, Amazon does more than $10 million in sales every 90 minutes. So we believe this is a reasonable exemption to protect small online businesses. That’s what we’re fighting for, and what big companies such as Amazon are fighting against.
I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea. Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business. Click here to make your voice heard. Together, I believe our voices can make a difference.
ebay On the Wrong (and self serving side) of the Sales Tax Issue by Mike Blumenthal