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A new bill making its way through Congress has the potential to change the world of e-commerce quite drastically and hurt the viability of small businesses across the country to compete in a growing sector of our economy.
Currently, online sellers are required to charge sales tax when the end customer resides in a state in which the retailer has a physical presence, or “nexus.” The Marketplace Fairness Act aims to change that. If passed, this law would require online sellers to charge sales tax regardless of where they have a physical presence.
Supporters of this bill are working under the premise that virtual e-commerce retailers, like Amazon, have an unfair advantage over local mom-and-pop shops because they can sell products in many states without charging sales tax. (Technically, the end customers are supposed to report and pay “use tax” on these items, but less than 1 percent actually do.)
Small business owners are the heart and soul of the American economy. Let’s create the right conditions in this country for them to succeed and achieve the American Dream.
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