Protecting Small Businesses from Tax Burdens

eBay Inc. Staff

Today eBay Inc. launched a national effort to ask Congress to reject a proposed sales tax bill that would place new burdens on small businesses. Over the course of the next several days, a message from eBay Inc. President and CEO John Donahoe will be sent to the entire eBay community in the U.S., encouraging them to ask their representatives in Washington, D.C. to protect small businesses by including a strong exemption in any sales tax bill.

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“Enabling small businesses and entrepreneurs is at the heart of what we do at eBay,” said Donahoe. “For the past 15 years we’ve fought efforts to place unfair tax burdens on small businesses and advocated for policies that protect small businesses’ ability to grow, create jobs and compete. I hope that the eBay community will join me in calling for a meaningful exemption for small businesses in any Internet sales tax bill.”

The current bill being considered by Congress would require small online businesses to collect sale taxes from more than 9,600 tax jurisdictions across the country, subjecting them to audits and potential litigation by tax collectors from states that are thousands of miles away from where they live, work and create jobs.

The legislation treats mom-and-pop businesses and entrepreneurs the same as multi-billion dollar retailers like Amazon and the national chain stores that have warehouses and stores around the country. It is no surprise that the bill’s biggest proponents are the biggest retailers in the country.

In his message, Donahoe shared eBay’s simple solution: If Congress passes online sales tax legislation, 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 this in perspective, Amazon averages more than $10 million in sales every 90 minutes.

eBay believes this is a reasonable exemption that would protect the small guys and allow them to grow and compete. Everyone wins when small businesses are given a chance to thrive. To join the effort and make your voice heard, click here. For more information about the issue and to see John Donahoe’s message please visit eBay Mainstreet.