For independent business owners, and the customers and communities that love them, e-fairness is critical to competing on a level playing field with online mega-stores. That’s why this week, in a campaign launched by the Advocates for Independent Business and Local First groups, people who rely on independent businesses are calling on their elected officials in Congress to seize a rare window of opportunity and vote to close the internet sales tax loophole.
While large online retailers are exempt from collecting sales taxes, independent brick-and-mortar shops are required to impose state and local sales tax rates of six to 12 percent on their customers — an added cost that makes it hard for Main Streets to compete. One recent study, by economists at Ohio State University, analyzed spending patterns of over 240,000 households and found that this disparity is driving a significant share of business to Amazon.com, at the expense of independent stores and all of the jobs and secondary economic impacts that they create.
The U.S. Senate already knows this. Last year, it voted overwhelmingly — 69 to 27 — to pass the Marketplace Fairness Act, which allows states to require large internet retailers — defined as those with over $1 million in online sales — to collect sales taxes. But then, the issue stalled in the House.
On Monday, Congress returns for a brief session, and in the next three weeks, it must vote to reauthorize another online tax-related issue, a long-standing ban on internet access taxes. Members of Congress who support e-fairness are urging their colleagues to take this opportunity to also pass online sales tax legislation, and combine the Internet Tax Freedom Act and the Marketplace Fairness Act into one bill.
To urge Congress to vote for fairness, AIB and its allies are teaming up on a social media campaign calling for #efairnessnow. Over the years, Congress has heard from thousands of small business owners on this issue. Now, they’re going to hear from those businesses’ customers — the millions of people who love and depend on independent stores — as they contact their members of Congress and take to Facebook and Twitter with the hashtag #efairnessnow.
For ways to get involved, check out AIB’s campaign page for shareable images, suggestions, and additional information on why small businesses need #efairnessnow.