Marketplace Fairness Act Would Be Devastating To A Small Business Like Mine

Tuesday, July 30, 2013
As President Obama visited Amazon’s Chattanooga facility today to talk about job creation in Tennessee, it’s only appropriate we discuss the way the Marketplace Fairness Act would actually kill jobs. When I heard this bill would require us to deal with almost 10,000 taxing jurisdictions, I about fell out of my chair. As a small business owner that sells all kinds of computer software through the Internet, there’s nothing creating more uncertainty for me than the Marketplace Fairness Act.
 
 
The biggest problem I have with the Marketplace Fairness Act is its name. There’s nothing fair about this bill.  It would actually require my business to be subjected to a far more burdensome tax scheme than my brick-and-mortar counterparts. I’d have to collect and remit sales tax to states I don’t live or benefit from. This isn't a loophole.  It’s the way the law was structured after the 1992 Supreme Court decision Quill v. North Dakota, which states that businesses only have to collect and remit sales tax where they have a physical presence. The law is the same for everyone.  Our business models are just different.
 
The second problem I have with the MFA is that it has a $1M small seller exemption, which has been touted by coalitions such as the Main Street Alliance as protecting 99% of small businesses. I have no idea where this figure comes from.  What I do know is that this threshold does not protect my business and it most likely doesn't protect thousands of businesses like mine across Tennessee and the U.S.  Profit margins online are so thin.  One million dollars in sales doesn't make anyone a millionaire.
 
The bottom line is simple.  This bill is devastating to small businesses like mine.  Small businesses like mine are the real job creators in America. That’s why I urge Rep. Fleischmann to oppose the Marketplace Fairness Act.
 

Tony Kornrumpf

Hoops Enterprise LLC

Signal Mountain

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