Wife of Small Biz Owner Explains How Marketplace Fairness Act Will Destroy Their Business Wife of Small Biz Owner Explains How Marketplace Fairness Act Will Destroy Their Business – NTK Network

Wife of Small Biz Owner Explains How Marketplace Fairness Act Will Destroy Their Business

One Ohio small business explains why the Marketplace Fairness Act would put an unfair burden on small businesses.

By NTK Staff | 01.02.2018 @2:30pm
Wife of Small Biz Owner Explains How Marketplace Fairness Act Will Destroy Their Business

Joan Stefan, whose husband built a successful online business, Taylor Toolworks in Columbia, Ohio, explained in a recent op-ed published in the Columbia Daily Tribune that the Marketplace Fairness Act would destroy small family businesses across America.

The Marketplace Fairness Act is a bill that would allow states to require online and other out-of-state retailers to collect sales tax. This means a company based in Columbia, Ohio would be forced to track the tax rate for each customer and collect the proper tax, and remit the tax back to that state.

This is not as easy as it sounds though, as there are roughly 10,000 individual tax jurisdictions in the United States, meaning small businesses would have to spend a tremendous amount of time and effort to make sure they are complying with the law.

Stefan further explained why this would be detrimental to small business:

“This burdensome structure could be enough to close down smaller businesses, eliminating a large number of jobs created by these small businesses as well as robbing shoppers of a wealth of options that exist online. About 50 percent of the products offered on Amazon are from third-party sellers, many of them unique.”

Stefan also explained why treating online stores like a brick-and-mortar store in the state they reside in would also be problematic:

“Online businesses would flock to the states that have little or no sales tax, depriving other states of the revenue they need…A larger problem is that of current law. It would be taxation without representation for a state to collect sales tax from a resident of another state. The online shopper has no voice in a state in which they don’t live, and therefore no legal power to fight unfair taxation. New laws would need to be written in order for an exception to be made for online businesses, and this would take a long time and would also run the risk of unforeseen consequences. The current laws place safe limits on state powers, and it may be risky to meddle with them.”

Stefan proposes that companies “remit all of their earmarked taxes to their own state department of revenue, and then those departments would balance their tax ledgers at the state level.”

Stefan concluded the op-ed by calling on small business and Congress to work together to find a solution that “allows these valuable companies to continue to thrive while still meeting the revenue needs of the towns in which their businesses reside.”

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