eBay Inc: More Work Needs to be Done to Get the Internet Sales Tax Issue Right
By: eBay Inc. Editors
The United States Senate passed the Marketplace Fairness Act, which would subject online shopping to state sales taxes, on Monday afternoon by a margin of 69 to 27. The proposed bill would require small-business merchants to collect sales taxes nationwide from more than 9,600 tax jurisdictions across the US.
The bill will next head to the House of Representatives.
“The contentious debate in the Senate shows that a lot more work needs to be done to get the Internet sales tax issue right, including ensuring that small businesses using the Internet are protected from new burdens that harm their ability to compete and grow,” said Brian Bieron, Senior Director of Global Public Policy at eBay Inc., in response to the Senate’s approval of the Marketplace Fairness Act. “eBay will continue to focus on bringing greater balance to the legislation by protecting small businesses with less than $10 million in sales or fewer than 50 employees.”
eBay Chief Executive John Donahoe has previously voiced his concern about the act, noting that a passed bill would hurt small businesses.
“Small businesses that sell online would be subjected to the same tax obligations as multi-billion-dollar retailers that have stores and warehouses around the country,” he writes. “That simply isn’t fair.”