I recently read an article written by DAN SCHNEIDER titled, “Will Congress give Alibaba a Green Light to Crush America’s Small Business?” He is the executive director of the American Conservative Union. In my opinion his organization lacks credibility read why here Marketplace Fairness Act: Fake Conservative Opinions are for Sale.
Here is a quote from SCHNEIDER’s recent Alibaba article:
“It is now up to the House of Representatives to decide if they’re going to stand up for small businesses or cut them off at the knees with a wet kiss for Alibaba.” SCHNEIDER goes on to write that the only way we can stop Alibaba from crushing small USA based businesses is to implement the Marketplace Fairness Act aka the Internet Sales Tax legislation that stalled out during 2014.
SCHNEIDER you are wrong our laws will not impact Alibaba on remote sales tax collection. I think you are blowing smoke and using the fear of China sellers to push through bad legislation. Did your organization receive any BIG donations that influenced your decision to back this legislation?
Here are a few things SCHNEIDER apparently overlooked:
- Alibaba is doing NOTHING that the Marketplace Fairness Act (MFA) aka Internet Sales Tax legislation could regulate. Alibaba is NOT the retailer selling taxable goods.
- “At this juncture, the EU VAT [European Value Added Tax] and the RST [Remote Seller Tax] under the MFA [Marketplace Fairness Act] are in exactly the same position. Both require overseas businesses to collect and remit a destination-based consumption tax, but neither can enforce the requirement. In addition, “The ability of a State to compel a foreign remote seller to comply with state tax laws (even after MFA passage) is difficult.” Source Boston University School of Law.
- Attorney James Sutton, who testified before Congress about Internet Sales Tax, recently wrote, ” As much as the beat of the pro-MFA drum sounds great when the “it applies to foreign sellers” chant is repeated over and over – it still doesn’t add up. Shipments via common carrier from outside the US will not give a state jurisdiction over the foreign seller even if the MFA passes tomorrow.”
My opinion (which is based on the facts) suggests that SCHNEIDER and his organization are creating a fake villain (Alibaba) to scare people to pressure their Congressman to pass bad legislation.