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Marketplace Fairness 2013, For or Against?

  • Feb 15, 2013 | Gail Cole

 Will Marketplace Fairness Make a Fair Market?

Introduced in the Senate and the House yesterday, the Marketplace Fairness Act of 2013 already has a groundswell of support. The National Governor's Association, the National Conference of State Legislatures, and the National League of Cities have all issued statements in support of marketplace fairness. So have many retailers, such as the National Retail Federation and the Retail Industry Leaders Association. Indeed, the list of supporters is long and deep.

The president of the Streamlined Sales Tax Governing Board released the following statement in support of the federal legislation:

"Identical Marketplace Fairness Act bills simultaneously introduced by both houses of Congress today would restore a badly needed competitive balance between in-state and remote retailers… . This is all about fairness, simplification and stemming the erosion of state sales tax systems. That the House and Senate have agreed on the approach and exact language indicates there is a readiness to get this done."

Yet there are a few voices in the wilderness speaking out against the Marketplace Fairness Act of 2013.

The Heartland Institute, a non-profit organization that promotes "free-market solutions to social and economic problems," says "the so-called Marketplace Fairness Act is anything but fair for the marketplace."

TechNet, a "preeminent bipartisan political network of CEOs and Senior Executives that promotes the growth of technology-led innovation," says the amendment would unleash "a flood of onerous and expensive tax requirements on entrepreneurs."

In addition, eBay has spoken against the bill. “Congress should reject any Internet sales tax legislation that throws a new tax barrier in front of small businesses," said Tod Cohen, eBay's deputy general counsel.

Is your business ready for online sales tax?

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.