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eBay tries to reach out against unfair Internet tax

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eBay is trying to modify the current ‘Marketplace Fairness Act’ before it is passed through the US House of Representatives, the online auction website states the act does not help small online businesses.

The act currently wants all companies that gain $1 million sales per year to pay tax just as offline companies would. With eBay’s huge online marketplace, many small businesses could be effected by this sales tax.

eBay would like to see the sales per year boosted to $10 million and for every company to have more than 50 employees before they are added to the Internet tax, this will make sure most small businesses on eBay stay away from sales tax.

CEO John Donahoe has sent a message out to all eBay sellers about the problem with the Internet tax and pleaded with them to try and get the Senate and Representatives to stop the current act going through.

However, Amazon and other major e-commerce websites have voted in favour of the act and this could mean a steady move to the delivery, without any changes.

Even though this may be detrimental to some eBay sellers, the Senate and House of Representatives will look at the broad problems, some small eBay businesses may be missed out.

Source: The Next Web

2 Comments

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  1. What happens is any business earning more than $1 million in revenue per year will be taxed depending on the state they live in. Even if they have no brick and motar business, the company still has a location where it gets funds paid to. Some states will not have Internet tax, others will. I do agree about the government knowledge bit, we have seen some terrible decisions made by the government that thankfully have not came into place.

  2. I think that this online sales tax is irrational. How much does our government know about computers and the internet? How would our government go about taxing internet purchases? How would the irs get the information it needs? This will probably cost the government money just to have the ability to tax the internet and the internet is billions of computers connected together through modems and the telephone lines and through communications satellites and I think that our government is thinking about the internet as though it’s only a United States thing. It’s called the WORLD wide web.

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