SkyGeek likes to stay away from politics. Red state versus blue state, elephant versus donkey…we don’t discriminate based on party affiliation. It’s bad for business to play favorites.
You know what else is bad for business? Bad policy.
For those unaware, on May 6th the U.S. Senate passed S.743, better known as the Marketplace Fairness Act of 2013. It is now on its way to the House in the form of H.R. 684 where if passed it will become law. Hopefully this won’t happen.
H.R. 684 is a contradiction in terms. It is anything but “fair.” Basically, the bill aims to force small online retailers (like us) to collect taxes in states that have sales tax. This compliance would be costly in terms of time and money; it will definitely harm our overhead. H.R. 684 would leave us and other similar e-commerce sites subject to audits from other states where we don’t even have representation. That, my friends, jeopardizes the 10th Amendment.
One of the main problems with H.R. 684 is that it exempts online retailers making under $1 million from complying. In essence it stifles growth. I repeat: Stifles. Growth. Let me explain…
Let’s say I am a small business making $999,000 in sales. This law doesn’t affect my company. But if I make $1,000 more I will have to pay. Where, then, is my incentive to grow? My company won’t want to make any more to avoid the costs of compliance to H.R. 684. My company won’t want to hire anyone as well because that will cut into our profits. In a less than stellar economy, Congress shouldn’t be passing legislation that fails to combat unemployment.
And as for companies that make more than the arbitrary $1 million threshold, unless you are a big company like Amazon, this could potentially cripple your business.
Like two bald eagles clashing, our country is at odds with each other. This issue is a microcosm of what plagues this nation, i.e. assist those at the bottom (online retailers making under $1 million) while hurting those in the middle. Those at the top such as Walmart? H.R. 684 will be the equivalent of a slap-on-the-wrist to them. The costs for compliance would be mere chump change in their swelling purses. In fact, major online retailers support this bill because it will eliminate or hurt their competition.
This piece of legislation reeks of collusion. How else do you explain its blatant disregard for those in the middle? Why must our government draft bills that reward only one portion of American businesses? And why should they pit poor versus rich, small versus mid-size?
Bottom line: the Marketplace Fairness Act of 2013 should either be revised or rejected.
Please help the SkyGeek team on this. We need to mobilize the troops. All you fans of the site and flyers who believe in free enterprise can do your part. Here’s what needs to be done: The House will be voting on H.R. 684 on June 12th. If you support us, click on the link below and electronically sign the petition to vote down H.R. 684.
You can also write a letter to your representative. Go to this site to locate the right congressperson in the district of your state:
Finally, if you want more information about how this hurts SkyGeek and others like us, check out the eMainStreet (formerly Internet Retailers for Fairness) website:
We have a sense of humor around here but when it comes to policies that negatively impact us and indirectly you, the customer, it’s time to take off the propeller hat and put on our think tank cap.
This is one of the reasons why nothing ever truly changes in our country. Americans are often not aware of what specifically our government is up to at any given moment. It doesn’t have to be that way. Spread the word. Tell others. Use the resources in this article and let them know that they can affect change.
It’s time to take action.