Mon May 20 2013 18:53:35 |
Survey Shows Online Sellers Worry about Internet Tax Creep
By: Julia Wilkinson
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We heard from a lot of you in our recent survey about the "Internet Sales Tax," formally known as the "Marketplace Fairness Act." Comments were optional, but implementation problems and "tax creep" were mostly on the minds of online sellers who left them.
Here is a small sampling of comments of those who felt the tax would be gradually lowered and affect more and more sellers over time:
- "It is only a matter of time before they lower the minimum sales requirement to affect Mom & Pop entities and 'garage sale' sellers."
- "...we all know what will happen if the law is passed. The one million limit that helped pass it, will suddenly start decreasing until any amount is taxed."
- "...It wouldn't be long til it does effect all who sell on the internet. Give an inch, they take a mile."
- "But once they start, they never stop, so it will affect me as a seller eventually, but certainly as a consumer
- "Not in that present form [would the seller be affected], but, fully expect the rate to be lowered to include everyone."
A few folks said that they thought people shopped online for convenience, and a tax wouldn't deter them from doing so: "I will buy wherever I find the right price, it doesn't matter if I pay taxes on it at the time of purchase or not."
Some sellers raised a point I hadn't thought of: some types of items aren't taxable, at least in some places:
- "My sales are less than $1 Million and I [sell] coffee, a food product, which is not taxable."
- "We sell a mix of products, bullion (non-taxable), toys (taxable). It's going to depend on the wording, whether it's one million in taxable sales or one million in sales."
Quite a few suggested that if there had to be a tax, that it be a flat tax that is easier to administrate, and easier for the sellers to calculate. And some felt the tax should be limited to the sellers "local district/town/state not foreign states --- just like B&M stores."
Do you agree that the tax threshold of $1 million dollars would probably be lowered gradually? Were there any points that were not made in the survey that you feel should have been? Post a comment here! |
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