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IPFS News Link • Internet

Get Ready for Online Sales Tax as Supreme Court Screws Small Online Businesses


Small businesses aren't disappearing, they are just moving online.

The American dream is alive and well and more accessible than ever!

Even while Amazon takes 44% of e-commerce sales, half of those sales are through small businesses using Amazon as their platform. Over one million small and medium-sized U.S. businesses sell on Amazon.

Owning an online business, you don't need the capital to open a store and pay the overhead on a physical location. Countless people are finding freedom in this changing economy. This includes the couple used as an example in The Daily Bell's free guide on how to make and stick to a two-year plan.

When another family could not get pregnant, they found that selling collectible cards online was the easiest way to raise the $35,000 it costs to adopt a child. Here's what they said before the decision:

If the Supreme Court reverses its precedent and allows states to enforce sales taxes on online sales, it won't affect the Amazons, Walmarts, Targets and other big retailers. They have all become "multichannel" retailers selling from their physical stores and distribution centers in almost every state and online. They collect and pay state taxes because of their physical presence in those states. For these large retailers and many other multichannel sellers, tracking the complexities of taxes across the 45 states that levy sales taxes is just another back office process, and they have the staff and budget to do it.

For us, an Internet sales tax would mean the certain end of our business. We can't afford specialty software to help us manage taxes. We don't have the staff, lawyers or accountants.

It's just us.