Rob Bluey and Kelsey Harris
April 23, 2013
The U.S. Senate is debating the so-called Marketplace Fairness Act. It’s a bill that would result in the taxation of Internet sales, driving up costs for consumers. The legislation cleared a procedural hurdle Monday and could have a floor vote by Thursday.
This is a classic case of where the interests of big business and big government intersect. President Obama offered his support Monday after strong lobbying by state politicians and corporations like Amazon.com and Walmart.
But not all businesses are signing on to this new scheme. Etsy, an e-commerce hub where individuals can sell handmade items such as arts and crafts, warned yesterday that the legislation would “unnecessarily burden small businesses. Most Etsy sellers work from home and don’t have the administrative resources to comply with the law.”
According to the Tax Foundation, there are 9,646 tax jurisdictions in the United States, creating the kind of complexity that would frighten any small business.
“How can we possibly know the tax rates in [those] jurisdictions?” said Overstock.com CEO Patrick Byrne. “In one jurisdiction, cotton candy is food; in another it’s entertainment or candy.”
Reason TV’s Nick Gillespie interviewed Byrne in 2009 about why he’s opposed to the plan. Byrne said the Marketplace Fairness Act is anything but fair.
Continue reading at 9,646 Reasons to Dislike Marketplace Fairness Act | Internet Sales Tax.