The Marketplace Fairness Act, a bill that would require online retailers to collect sales tax when it comes to online shopping purchases, is making its way through the Senate.
Currently, only retailers with a physical presence within the state have the right to collect sales tax. Supporters of the bill include brick-and-mortar stores like Wal-Mart, Best Buy Co Inc and Sears. The bill is also supported by Amazon, the largest online retailer. Amazon initially was against the tax in 2011, but now supports it after it agreed to pay taxes in several states including California.
FOR MORE NEXT MEDIA ANIMATION, GO TO: http://www.youtube.com/subscription_center?add_user=NMAWorldEdition
Twitter @nmatv http://www.twitter.com/nmatv
Opponents of the bill, EBay being the largest, say the bill will excessively burden online retailers, who haven't had to deal with the thousands of different tax codes previously. EBay Chief Executive John Donahoe had the company email millions of its users on Sunday in a huge lobbying effort against the bill.
The bill does include an exemption for retailers that generate less than $1 million in annual out-of-state revenue.
In the end, consumers will likely suffer the most because they will have to pay more and have to listen to politicians and businesses pretending to have their best interests at heart.
Do you agree with an online tax?