Wednesday, December 5, 2012

Marketplace Fairness Act

http://www.ecommercebytes.com/cab/abn/y12/m12/i04/s02

Durbin Looks to Include Online Sales Tax Provision in Defense Bill


"Dick Durbin (Ill.), the Democrats' assistant majority leader in the Senate, filed an amendment on Friday to include the Marketplace Fairness Act with the defense bill"

"They would get rid of state borders from the perspective of tax law," Brian Bieron, eBay's senior director of U.S. government relations and global policy, said of the sales-tax bills that have been proposed in a video outlining his company's position. "They would make a small business retailer collect and file sales taxes in every state. We think for a small business, that's an especially negative change and we oppose that change."

Bieron added: "All small businesses and entrepreneurs who use the Internet to engage in any kind of retail business should be concerned about these bills. Right now, only a really giant retailer with stores or distribution centers all across the country (has) to collect sales taxes basically everywhere. Those giant retailers are trying to change the law so that every small business has that same tax burden. That would directly increase costs for small retailers. It also means that small business retailers could actually face audits and law enforcement action from any state where they have customers."

If it is such an important piece of legislation why are they trying to hide it in a defense bill?

14 comments:

  1. Lots of local small businesses have been hurt by online retailers who don't charge tax. I mean, I get that we should all be able to live tax free because all tax is just tyranny and enslavement, but I think it's a little disingenuous to have an eBay lobbyist talk as if he is supporting small business when actually his company is in direct competition with them.

    In fact, William, it is not at all unlike Democrats using pregnancy by rape as a primary rational to keep abortion legal for everyone.

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    1. You have no understanding about what it means to collect sales tax over 50 states when your revenues are small.

      NONE.

      Please, please stifle yourself from bringing abortion into every conversation.

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    2. So, after raising it yourself in two topics late last month, you now don't want to discuss it, fair enough. I guess only you are able to raise it in a pertinent way. Thank you for letting me know I hit that nail on the head here with my analogy.

      Admittedly, it would be a major pain in the ass for a true small business to have to file taxes in every state they sell to. The flip side, however, is that several companies have been built solely to take advantage of what is basically a tax loophole. It's a matter of scale to me. Why should a small business, that employes local workers and is tethered by brick and mortar to a local site, be put at a disadvantage by a monster distributor who doesn't pay sales tax?

      You may not like my analogy here, but it fits. It's the use of an example that is not the norm in order to avoid an honest discussion on a much larger matter. Why not exempt businesses under a certain level of revenue? That's the type of compromise that rigid conservatives are not able to contemplate because it is not ideologically pure.

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    3. Max,

      I see two questions here, the collection of internet-based sales transactions salestax, and the incorporation of this legislation in an unrelated piece of legislation for what is presumably widely held as something no one dare hold up, the defense bill.

      What do your answers have to do with either? It seems as if you only want to trade a barb or two.

      Personally, I would be hard-pressed to argue against internet sales being subject to tax, except that I think that should be legislation by states, rather than the central government. I do agree with William that this could be a significant burden for SBs. On the other hand, it is an issue of marketplace competition; let each state decide if it wants to keep the field slightly tipped, or not, for SBs.

      No point in arguing that irrelevant riders on a bill is the common practice. I would suggest that this is one more example suggesting legislation should be limited to one issue. Probably won't go anywhere, tho.

      Jean

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    4. Max, most brick and mortar sites that have prospered have adjusted and incorporated internet sales. Your point drags us back into the argument that we should support old fashioned snail mail at the detriment to email.

      This is in the end a national sales tax grab, a VAT, or whatever they want to name it. It's all about the government wanting more of our money.

      1773-2009 Taxed enough already.

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    6. What an absolute joke. A small business is suppose to collect sales tax. In Colorado we have a base sales tax, 3%. In some areas we have a transportation sales tax, a nifty stadium sales tax to subsidize the sports teams, a development sales tax for areas under construction, we also have a municipality/county sales tax.

      Depending on where you live in the metropolitan area the sales tax charge can be 3.1%-8.75%.

      A retailer needs to know how much to charge. Good luck.

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    7. William above.
      "This is in the end a national sales tax grab, a VAT, or whatever they want to name it. It's all about the government wanting more of our money."
      William do you understand that the Government is the people? As you remind me often, you are a Republic and therefore you the people are the government.
      So, following that premise how can you cavil at the people being asked to pay their share of money in taxes so that the orderly government by the people of the people can be achieved?( I do apologise to Abe for paraphrasing his words)!
      Cheers from Aussie

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  2. The same mentality is going on in our schools. Kids with tutors have an unfair advantage. In the UK, they are getting even more serious about banning this inequality. http://www.dailymail.co.uk/news/article-2241411/Changes-11-plus-stop-parents-buying-access-selective-schools-hiring-tutors-children.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

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    1. Government approved history is from George Orwell's "1984"; government compulsory education is subtle brainwashing. This early, premeditated ignorance is the strength, the foundation, the first cause of any paternalistic authority: IGNORANCE IS STRENGTH.

      Pink Floyd THE WALL 1979
      "We don't need no thought control. Hey teacher leave those kids alone. All in all, you're just another brick in The Wall."

      Harriet and John Stuart Mill 1865
      "A general state education is a mere contrivance for molding people to be exactly alike. It establishes a despotism over the mind, leading by natural tendency to one over the body."

      Texas State Board of Education 1982
      "Textbooks shall promote citizenship, emphasize patriotism and respect for recognized authority. Textbook content shall not encourage life-styles deviating from generally accepted standards of society."

      http://www.stormy.org/edubrain.htm

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  3. "What do your answers have to do with either? It seems as if you only want to trade a barb or two."

    I did address it. It would be a pain in the ass for small business to deal with it and I think it is an unfair advantage. I haven't read this bill so I'm not saying I like it just because I'm liberal and in theory like all taxes. This is an unrelated subject, but it seems this has been the year of using a distractor example to avoid discussing big topics. I thought the Democrats did this a lot in the election cycle to handcuff candidates to a single opinion that looked unpopular. It's a bit disturbing to me that this is the new way of doing things.

    Whether Durbin's bill stands on the merits or not is the discussion NOT being had while big business pretends they are standing up for little guys.

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    1. Max,

      Sorry. I posted before your second comment displayed, even tho it was stamped 7:50 and mine was at 7:59.

      Jean

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  4. I used to dance at a place called "The Halloween Gangbang" ...

    ;-)

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