The bill is good for huge corporations because the cost of administering 45 state taxes is hard for their smaller competitors to handle.
Atlanta, Georgia (PRWEB) May 24, 2013
Sales tax is not something that most people think about when they shop online, but many fear it will be if the proposed Internet Sales Tax bill is passed into law. Local technologist and internet marketing leader Jason Hennessey says that the bill has both advantages and disadvantages, but has not been well explained in the media.
The Marketplace Fairness Act, more commonly called the Internet Sales Tax, has passed the Senate and is under consideration in the House. The act would attempt to rectify what some see as a major blow to state budgets: millions of dollars in sales tax revenue lost when consumers purchase their goods online according to USA Today (5.6.2013).
Presently, online retailers are not required to charge a sales tax.
Hennessey, the founder of local SEO and marketing firm Everspark Interactive, says that's true – but presently, consumers are require to pay sales tax anyway.
“As written this bill doesn't impose any new tax at all,” he said. “Right now, if you purchase something online you're supposed to report it on your state taxes next April and pay the sales tax then. Of course, no one does that.”
Hennessey believed that much of the pushback to the bill comes from consumers who are worried about a new tax, but says the real fallout will be for medium size businesses.
“The bill is good for huge corporations because the cost of administering 45 state taxes is hard for their smaller competitors to handle,” Hennessey said. “It's not bad for very small retailers either, because if they make less than $1 million in revenue they're exempt. The companies that will sweat the most are mid-size companies that have just grown beyond a mom and pop operation.”
Will the tax stick consumers with higher prices? Hennessey says not directly.
“The media has really made it sound like we're going to pay more taxes, but that's not exactly true,” he said. “But the bill would create more back-end costs for businesses, and they'll pass that on to customers.”
Everspark Interactive is an Atlanta SEO company and internet marketing firm. With a hand picked team of the brightest marketing minds in the country, Everspark creates gripping, engaging content that drives web traffic – and dominates search engines. They can be reached at (770) 481-1766.