Small brick-and-mortar businesses are the backbone of our nation’s local economies. They create jobs, drive local reinvestment, and serve their communities. Yet current tax laws put these ever-important local businesses at a disadvantage in the uphill battle against large-scale retail corporations. Fortunately for our small businesses and our economies, though, help is on the way in the form of the Marketplace Fairness Act.
Currently, online-only retailers are exempt from collecting sales tax at the point of purchase, giving these retailers an unfair advantage over small brick-and-mortar shops in the commercial marketplace. Online-only retailers exploit this loophole, yet they have no presence in our communities and do not give back to our economies and citizens as local brick-and-mortars do. As a result of the current tax model, our economies, businesses, and states lose opportunities for economic expansion and recovery.
The Marketplace Fairness Act (H.R. 684) seeks to level the playing field between online-only retailers and small brick-and-mortar businesses by eliminating the sales tax loophole. The Act would not impose a new tax, but rather require previously exempt retailers to collect sales tax on transactions just the same as all other retailers. This seemingly small – but certainly powerful – change could create 1.5 million jobs and an additional $563 billion in GDP over the next 10 years. By holding online-only retailers accountable to equal tax laws, the Marketplace Fairness Act will give our small businesses and state economies a fighting chance in the journey to economic prosperity and stability.
The Marketplace Fairness Act was passed in the Senate with overwhelming bipartisan support on May 6, 2013. As the bill makes its way through the House of Representatives, it’s time to show your support for marketplace fairness, small businesses, and state economies.
How You Can Help
You can make a difference for your state, your community, or your business by taking action to support the Marketplace Fairness Act today
- Spread the word in your community by telling your friends, family, and co-workers to stand up for efairness.
- Follow these guidelines from 21st Century Retail to write or record a testimonial telling members of congress:
- Why we need to level the playing field so that all businesses can compete fairly
- How easy it is to integrate and use web-based sales tax collection software, if your business uses it.
Tell us why Marketplace Fairness matters to your business and your community in the comments below.