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Wednesday, April 24, 2013

Marketplace Fairness Legislation - Moving Along?

You're probably seen the press coverage* of the Senate moving to vote on the Marketplace Fairness proposal (S. 743 and CBO info), because there has been a lot of it.  This type of proposal has been around since 1994, so it is not new. What is new is that it is getting to the point of a floor vote!  I'm not convinced it will bring in as much sales tax as states suggest (about $23 billion per year) because it exempts vendors with $1 million or less of sales, and Amazon has been collecting sales tax in a growing number of states.

Here is what President Obama says (he'd sign the bill) ... (this is per Press Secretary Carney on April 22):

"We believe that the Marketplace Fairness Act will level the playing field for local small business retailers who are undercut every day by out-of state online companies.  Today, while local small business retailers follow the law and collect sales taxes from customers who make purchases in their stores, many big business online and catalogue retailers do not collect the same taxes.  This puts local neighborhood-based small businesses at a disadvantage to big, out-of-state, online companies.  And because these out-of-state companies are able to cut corners and play by a different set of rules, cities and states lose out on funding for K-12 education, police and fire protection, access to affordable health care and funding for roads and bridges.
"This administration has carefully considered the legislation and our team has met with a broad array of people on the issue, and we have heard overwhelmingly from governors, mayors and the business community on the need for federal legislation to level the playing field for our businesses and address sales tax fairness.  The bill also provides an important exception for small business and has bipartisan support, which I'm sure you know.  It is broadly supported on a bipartisan basis. 
This is simply about leveling the playing field so that bricks-and-mortar businesses that depend on customers to survive are not playing at a disadvantage, competing at a disadvantage, and selling products that others are selling online but not collecting taxes."

What do you think?  (about both the bill and its prospects)

* See for example, New York Times, "Internet Sales Tax Bill Gains Ground in Senate," by Weisman, 4/22/13. 

2 comments:

tax brackets said...

The top 1% own 43% of America's wealth, the next 19% own 50% of America's wealth and the other 80% own SEVEN PERCENT of America's wealth. I think you may have forgotten to mention that in your little article.
Didn't forget to mention it, because it has nothing to do with who pays how much Federal income 2013 tax brackets.
2) The earners in the top income brackets are already taxed. The top 40% of income earnerspay more than anyone else does in taxes. The top 20% pay 65.3% and the top 10% pay 50% and the top 1% pay.

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