Thursday, March 28, 2013

Big Retailers Are Backing Internet Tax Bill

Change is in the wind for Internet sales. Major retailers are applauding recent Senate passage of a bill to impose sales taxes on all online orders in the United State, arguing that it is needed to "level the playing field" between brick-and-mortar and online retailers. The appeal to cash-strapped governments is clear: The bill's sponsors claim states collectively lose $23 billion a year by not taxing online purchases. The House has its own bill to allow states to levy taxes on online orders from major retailers (sparing small sellers), but the Senate bill would cover all online sellers. The Senate bill is backed by the National Retail Federation and Retail Industry Leaders Association, representing major businesses such as Best Buy, Target, and Wal-Mart. It is opposed by Internet giants like eBay, which argues that the Senate act would unfairly hamper small businesses. The Senate bill has some caveats that might initially ease the fears of small online retailers: It would be non-binding, so states could choose to simply not enact it. But opponents argue that this loophole is just a ruse to woo basic support for a more stringent Senate bill in the wings, dubbed the “Marketplace Fairness Act of 2013.” For more, see the news report at http://ivn.us/2013/03/28/major-retailers-want-internet-tax-law-to-level-playing-field/

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