During the 113th Congress, the United States Senate voted 69-27 to pass the Marketplace Fairness Act of 2013 bill on May 6, 2013. The Marketplace Fairness Act of 2013 (MFA) is a proposed law that would require online sellers to collect and file all sales and use taxes. The bill still needs approval from the House of Representatives before it can become law. The bill's supporters are large retailers like Sears and Target, who say they are at a price disadvantage because they must charge sales tax on every sale while online retailers do not. On the other side are e-commerce companies like eBay and Overstock.com, as well as small online merchants, who say complying with 45 state sales laws and more than 9,000 jurisdictions is too complicated and expensive. According to the Congressional Digest, e-commerce has enjoyed an unfair advantage for many years by not having to collect certain taxes. The government is mainly responsible for this one-sided situation towards online sellers. Many authorities believe that the Internet is essential for high productivity and economic growth, and that preserving the Internet's potential is important. In fact, President Bill Clinton signed the Internet Tax Freedom Act into law in 1998 to ban any taxation on Internet access, which has since been extended to subsequent presidents. Under current tax laws, online store merchants collect sales tax from state consumers similar to how “bricks and mortar” charge sales tax when customers enter their stores. Online merchants, however, do not collect sales tax from consumers who purchase from a different state. Out-of-state consumers are subject to a different tax, a use tax which is "a tax imposed on the use of certain... paper media... a result of collaboration between the state government and businesses community However, the Marketplace Fairness Act has very little chance of winning the House of Representatives, because despite its simplified and modernized tax provision, the law will not eliminate the problem of complex multistate tax policies taxes, it is virtually impossible to force every state to follow the same tax simplification rule. Furthermore, given the heated controversy and universal impact of the bill, politicians will look for ways to slow its entry into force as similar problems arise. check out Obama's universal healthcare. No matter if the bill is enacted or not, one thing is for sure that nothing will discourage people from shopping online (not even sales tax) because shopping online is just too much. cheap and convenient.
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