Anti-Waste Group: Don’t Bring Back the Marketplace Fairness Act Anti-Waste Group: Don’t Bring Back the Marketplace Fairness Act – NTK Network

Anti-Waste Group: Don’t Bring Back the Marketplace Fairness Act

Despite its name, the bill would crush local businesses under the weight of unnecessary compliance regulations.

By NTK Staff | 12.21.2017 @1:00pm
Anti-Waste Group: Don’t Bring Back the Marketplace Fairness Act

As internet sales boom this holiday season, some in Congress are eager to pass the so-called Marketplace Fairness Act, a bill that would allow states to require online and other out-of-state retailers to collect sales tax.

Internet sales in the U.S. are expected to reach $500 billion in 2020, and many are eager to cash in on that potential windfall. But Citizens Against Government Waste (CAGW) is asking Congress to press pause.

The Marketplace Fairness Act would require small online retailers to collect sales tax nationally, and that feat is not as easy as it sounds. In order to collect sales tax nationally, of which there are roughly 10,000 individual tax jurisdictions, a tremendous amount of time and effort is required of mom and pop businesses:

These small businesses would carry the burden of trying to apply such an online sales tax. They would need special software to navigate the varying sales tax rules from each state. They would need to hire more employees to deal fulltime with the software used to calculate the state and local sales taxes. And, they could potentially see their sales drop as consumers once again alter their behavior to find the best price.

On the other hand, so-called big-box retailers and behemoth Amazon are welcoming the tax. Already massive in size and scope, these companies have the infrastructure to handle tax compliance state-to-state in a way smaller retailers simply never could.

That’s why CAGW is asking Congress not to move forward with the Marketplace Fairness Act.

“As these discussions renew in Congress regarding the collection and remittance of online sales taxes, lawmakers should keep in mind that their actions may negatively affect small businesses throughout the American economy,” the group wrote on its website Wednesday.

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