Since I have an eCommerce site also, the word tax generally makes my ears perk up a bit and I usually get a sick feeling in my stomach.
Since it passed today in the Senate, I figured it’s probably time for me to do my own investigation especially since I’ve been hearing different stories depending on what media outlet you’re following at any given time.
So what does the bill actually say, what are the chances it might become law and is it going to effect my business? Is it going to put me out of business?
These are all my questions!
It turns out that it’s a pretty long boring bill with a bunch of legal lingo just like most bills I’ve read. However, there were a couple notes that especially caught my eye.
First and foremost, they have added a small business exemption for online sellers making less than $1 million annually.
Bingo …cause I’m not in that million dollar category yet.
But what kind of precedent will it set? Also…a million dollars in sales doesn’t equal a million dollars in profit. Not even close!
Second, the internet sales tax will only apply to purchases made by customers in states where sales tax is already collected.
Ok…that helps a little…I guess.
This article written at Mashable says Amazon is for the tax and eBay is against it. Even after reading the article it’s still hard for me to swallow the fact that a company who operates primarily online could be for the new tax.
Maybe they know something we don’t. What do you think?
Maybe Amazon is so big now that they know they can absorb the tax but it will crush their remaining competition.
Anyway…it hasn’t passed in the House yet and may prove difficult to do so.
There’s plenty of opposition because no matter how you look at it….it’s still another tax.
As for me…I’m definitely in the opposition camp.
What about you…Got an opinion?