Have you heard about the “Marketplace Fairness Act”?
Recently the United States Senate passed this bill which, if made law, would make small on-line businesses, like us, have the huge burden of collecting sales tax from every US customer for every single state, that’s 9,600 state and local jurisdictions.
That means that on-line purchases you make will cost you more, up to 10%. Not only that but many of the small on-line stores that you enjoy shopping at now would shut down, because they will not have the time or money to maintain that type of paperwork and reporting.
Another round of mom and pop stores …. gone
If you are old enough you will remember the mom and pop stores, the funky little corner grocery store, hardware store, book store, gift shop that were wonderful, friendly places to shop. If you don’t remember them it is because when the big box stores made the scene it essentially put the small time shop owner out of business.
The Marketplace Fairness Act will once again allow big box stores to put small businesses pretty much out of business. Eliminate the small eCommerce sites and you eliminate their competition.
Next time you are not sure what tool you need for your repair try giving Amazon or Walmart a call.
Leveling the playing field or adding to unemployment?
The Act came about to level the playing field for Brick and Mortar stores who felt that they were losing money to e-commerce sites. I don’t know about you but I buy on-line when I can’t find what I am looking for locally. If I can find it locally I generally buy it because I want it now.
Our economy is still in pretty bad shape. If small eCommerce businesses were to shut down that would negate any progress we have made as more people join the unemployment line.
Small businesses don’t have the deep pockets needed to fight this but we do have our voices. Not only would this Act hurt our personal business but it would cost the consumer more money and less personal service.
Although the act states that online sellers with less than $1,000,000 in remote sales annually will be exempt from collection requirements, my guess is that we will be taxed by our supplier and we would have to pass that financial burden along to the consumer.
If you want to continue to enjoy shopping from the comfort of your home or shop I implore to make your voice heard. Many of you are small businesses as well and we would appreciate the support. Send a letter to your State Representative or Congressman.