The Senate is about to end tax free online shopping. The Marketplace Fairness Act would allow states to require online sellers earning over $1,000,000 to collect sales tax from their residents.
eBay is lobbying for a higher threshold – $10,000,000:
Chief Executive John Donahoe sent out millions of emails over the weekend seeking to enlist eBay users in his fight to raise that bar to $10 million. Though the company says it doesn’t have a tally of how many of its sellers would be affected by a $1 million threshold, it is presumably fighting for the lion’s share.
Mr. Donahoe has said the bill would damage smaller retailers by treating them the same way it treats large merchants that have sophisticated tax-collection capabilities.
I’m not sure about Mr. Donahoe, but I find it kind of hard to think of sellers on an auction site who make up to $10 million annually as “smaller”.