Press release is e commerce prepared for internet access taxes (1)
Is e-commerce prepared for internet access taxes?
Published on: Mar 4, 2016
Transcripts - Press release is e commerce prepared for internet access taxes (1)
E-Commerce Bracing Up For Internet Access Taxes
For Immediate Release:
There is actually an “internet access tax” on the books that was banned in federal law by the
previous democratic congress and senate. The ban was dated on December 11, 2014. By some
miracle, it actually passed in an extremely rare bipartisan voice vote in the House last July. In a
major surprizing event, the Senate Minority took it hostage, making sure it sits waiting for
congress to return someday to Washington.
According to Wesley Yuhn, an internet marketing and technology specialist in Tampa, there are
2 bills pending in the senate. As per Wesley, he agrees with the Roll Call analysis that the
Internet tax moratorium which passed the House in July should fly through when the Senate
returns but the second one, “The Marketplace Fairness Act” is the one to watch out for.
It is the second one - the one nobody is really talking about – that could severely hurt every small
business and entreprenuer in the U.S. The main disagreement is over the right for Mississippi (or
any other state) to tax purchases made by customers in California (or any other state) for goods
that are shipped from Florida (or any other state or country).
Whoever wrote that section made sure that every business – superduper, larger than life, big
enough to lose placement, mid-level struggling for space and itty-bitty momas’ place in the
world selling her crocheted potholders---would have to be licensed in their state as an e-
commerce business and pay taxes in their own state as well as submit to auditors from any state
where the product is sold, to check out the accuracy of their accounting.
Maybe ACHDP or Sears or Google have accountants on site that can produce all those accurate
records at the click of a button, but it’s possibly a given that grandma with her knitting and
crocheting business will probably have to gather a bunch of papers together to show her “record”
The auditors may have to view the charges for products and shipping through schmears of catsup
and coffee droplets and separate the corners that are stuck together with lollipop bits.
It’s not only the inconvenience of producing documented records for inter-and-intrastate auditors
that is the problem. If the only thing that this “fairness” act is taxing is the “purchase price”,
granny is really going to be hanging on the hook.
It’s understood that handcrafted items sell for less than the cost to produce them 99.8% of the
time. For example, Granny doesn’t get a discount when she buys 10 skeins of yarn and she
doesn’t get paid for the hours it takes to make the item to sell.
For example, a “crocheted bed doll” – a fancy skirted dress on a half-doll that sits on little girl’s
beds - takes about 20 skeins of yarn (@3.00 a skein) and 87 hours (@minimum wage = $630.75)
and she’ll be lucky to get $75 for it online.
Will the loss taken in by people like her be taken into consideration in the “marketplace” or
“fairness” section of this act? That still remains to be seen.