It's long been argued that online sellers have taken business from brick & mortar stores, including many mom and pops, because they could offer the same products to consumers without adding sales tax to the purchase price. This pricing advantage led retailers of all sizes to push for legislation to level the playing field. The result was the Marketplace Fairness Act, recently passed by the Senate and awaiting a vote in the House of Representatives.
Passage of the bill is far from assured as many Republicans and a few Democrats have expressed reservations about the legislation. The vast majority of retailers, including e-tail giant Amazon.com, support the legislation.
House Speaker John Boehner is among those opposed to the bill. Mr. Boehner told Bloomberg Television that complying with sales tax codes from around the country would be too difficult for retailers from a compliance perspective.
Opponents of the law may take comfort from a survey of nearly 1,100 U.S. residents conducted by Endicia which showed 61 percent opposed to its passage.
Among the study's other findings:
- Forty-four percent will buy fewer items online
- Forty percent will not change
- Twelve percent will buy more at local brick and mortar stores
- Four percent will shop at big chains.
- Survey: US residents oppose Internet sales tax - PCWorld
- 44% of Shoppers Will Buy Less Online if Internet Sales Tax Passes - Mashable
- After easy passage in the Senate, online sales tax bill faces much tougher road in the House - The Washington Post
- NRF Urges Senate Support For The Marketplace Fairness Act - National Retail Federation