Online Sales Tax Bill

Online Sales Tax Bill

The Senate is poised to pass a bill this week that could end the longtime exemption of sales tax on online transactions. This bill has bipartisan support and could end a varity of small internet buisnesses aswell as create major issues with states that do not have sales tax. The fiscally conservative Americans for Tax Reform have called this new bill a further tax increase. The bill is most likely a result of complaining Brick-and-mortar retailers calling to end the "preferential treatment" for companies who sell solely over the internet where the buisnesses can offer lower prices. Many online retailers strongly oppose the tax as it cuts away small profit margins, however there are also those who support it. Amazon.com supported the bill after striking a series of agreements with the state of California, where its headquarters are located. According to many legislators it is time to level the playing field between physical stores and internet shops.

This new bill only hurts the consumer. Personally, I am also affected by this bill as I opporate a small EBay buisness. It is very hard to continue to make a profit after paying the many rates of running the buisness whether it be shipping costs, paypal charges, and EBay fees and an additional charge would only make entreprenuership an even more unreachable goal. There are also many senators and buisness owners who are pushing against this bill including the Chief Executive of Ebay John Donahoe. It is irritating that whenever the government finds an additional way to ciphon money out of American pocketbooks they do so just to waste it away by giving tax cuts to big buisness like the oil industry or increasing payment of governmental employees.