Thousands of local small businesses could close if the Marketplace Fairness Act is passed: forces “mom and pop” stores with online presence to collect taxes in more than 9,600 tax jurisdictions across the U.S.
As a nationwide E-Commerce photo digitizing company, ScanMyPhotos.com lends its support to stop the Marketplace Fairness Act from harming consumers and small businesses.
The U.S. Senate is expected to vote on an Internet sales tax bill that would hurt small business and job growth in America. We need a small business exemption.
For small businesses, there is nothing fair about the Marketplace Fairness Act. The legislation stems from a fight between big bricks-and-mortar national retailers and big online retailers, all of whom seem unconcerned that small enterprises—and the jobs they create—are going to be collateral damage.
The trouble with the bill is that it treats mom-and-pop businesses the same way as it does multibillion-dollar retailers. Yet a small business with a dozen employees simply can’t be lumped in with national behemoths such as Amazon and retail chains that have warehouses and stores around the country. The Marketplace Fairness Act should include an exception for small businesses. Why? Because otherwise an unfair burden will be placed on them.
Today small businesses that operate online are responsible for collecting sales taxes on purchases made in the state where they are located. That is fair. But the proposed bill would require them to collect sales taxes on behalf of every state where they make a sale. That would make it difficult, if not impossible, for them to succeed and track. This will cost innumerable added costs and software upgrades that would be a colossal burden on small businesses with an online presence.