Concord, NH (April 2, 2013) -- Should the federal government pass the “Main Street Fairness Act” into law? Do not let the title fool you. This legislation will in fact shut down most small businesses and many large ones. Instead of creating “fairness”, it will put an end to the free market that exists now on the internet.
For small businesses that use the internet to do business, this new legislation would require you to file with the tax collectors in every state. That will require you to comply with no less than 9,600 different tax codes that are changing everyday without you realizing it.
Now here is the icing on the cake, if you are audited by a state that you have sent products or provided services in, in order to defend yourself, you will have to travel to that state.
The scary part is that during the recent budget debate on Capitol Hill there was a nonbinding vote on this legislation. It garnered over 70 votes in the Senate that would have been enough to pass.
Some of you might remember years ago the state of Massachusetts tried to force a tire company in New Hampshire to collect information on the people they sold too and to charge the Massachusetts sales tax on any purchases made by Massachusetts residents. Thankfully the case was taken to the Supreme Court and the court found in favor of the New Hampshire business and against the state of Massachusetts. This does provide some legal precedence, but we all know how that works when it comes to legislation on the Hill.
Proponents of the Marketplace Fairness Act will tell you it will not affect your small business, that you have to make over a million dollars to meet the requirement, but don’t be fool by that either. If you deal in high cost items and a few sales hit that mark you will be held accountable. This is based on gross sales, and there are no parameters built in to consider the cost of running the business itself. It is a false exemption that doesn’t even include a definition from the federal tax code and it is far too low. The US Treasury Department labels small business with those doing business in excess of $10 million and the SBA labels it at $30 million.
The last thing any of us need is yet another new tax on top of the recent increased payroll tax and the number of other forms of taxation and fees that are being debated on the Hill and in your state capital right now.
Speak up and out about this intrusive tax that will destroy the free market enterprises that exist today on the internet. I suggest visiting: http://werherecoalition.org/
The revolutionary market place of the internet could be just one vote away from destruction, is that vote coming from your Senator or Congressman? I think you should ask, don’t you?