the author: Wang Zhong wan
online trading of commodities should pay tax? This although not a new topic, but heat is particularly high in this year’s discussion. After ten years of rapid development, online shopping has become a part of life, many netizens are also impact the traditional commercial economy. In the ministry of commerce, ministry of finance, such as government agencies on this issue to discuss, the industry again taut nerve, which also sparked speculation.
jack ma in the retirement ceremony said recently, myself to support a tax, but against collecting it now. What should a? Perhaps there is no conclusion. Represented by the United States, after all, the main electric dealer market has yet to agree on the issue, however, the government is speeding up to the electricity “operation”.
in just a few days before the U.S. senate passed a market fair act, if the final bill in the house of representatives passed, means that the electricity enterprises without exception need according to the location of consumers pay the sales tax to the state governments.
the market fair act is the official name of the American online tax bill, as the name says, proponents argue that the bill will help to break the particular advantage of online store, let entity shop is no longer a consumer site products, play only see not to buy the display of the earth; Opponents argue that the bill is a disguised tax increases.
what’s interesting is that the two electricity giant amazon and eBay, on the question of whether or not to levy opinion is completely opposite actually.
interests behind the huge
U.S. department of commerce, network transaction value of $225.5 billion in 2012. States, according to the sessions of the national state senator estimates, the loss of sales amount is about $23 billion, half of them because of the online sales, half is a directory, mail and telephone orders.
the situation forced the U.S. government to take measures. On whether to allow states to shop the market fair act of a sales tax in the vote, the senate finally agree with 69 votes, 27, a rare across party line, unanimous support online tax proposal. But some conservatives see the proposal as tax increases, relatively less scope will be made by the house of representatives, but President Obama has expressed his support this proposal.
45 in the United States have legislation, residents must pay taxes on online shopping. According to the current law, states can only require retailers, under the condition of charge sales tax in the state’s entity shop, so the actual charge of online tax is quite difficult.
, for example, in the United States have branch of large retailers, such as wal-mart and best buy and Target in online sales of goods is must to consumer sales tax; But like eBay and amazon and other online retailers, in addition to the state’s office or distribution center, otherwise don’t need the collecting sales tax.
under the proposal passed by the senate version, revenue at more than $1 million annually all sellers, must give the buyer a sales tax, tax is in accordance with the buyers don’t live in a state.
how people view
if the fair market act became law, according to a Endicia electronic stamps in a recent poll, 44% of people said, would be reduced in the network shopping.
the survey also found that people aged 18 to 25 years old of respondents will not only reduce the online shopping, also can choose in the small shops near the consumption. The result is quite interesting, because this is strong supporters of the bill “the National retail Federation” (National Retailers Federation) want to hear the answer. This represents the traditional entity retail stores group has long been stressed, because don’t have to pay the sales tax, online store has a larger than a traditional store an unfair competitive advantage.
more than 61% of respondents said they don’t agree with online tax bill, but agreed to nearly forty percent of the people. Nearly sixty percent of people believe that if the proposed legislation would hurt economic growth.
who is against?
opponents to the proposal the biggest concern is the disproportionate burden on small businesses. When the state charges merchants evasion, amazon can hire elite lawyers rather than prevarication, but on the Internet to sell parts of small businesses but couldn’t.
among them, in the case against the most powerful, the active voices in the media enterprise, e-commerce platform of eBay.
in a letter sent to the seller, eBay CEO John? Mr Doner (John Donahoe) suggestion, proposal should be ruled out less than 50 workers or annual turnover of less than 10 million sold out of state enterprises. He told the Wall Street journal articles, the more points out that if the proposed legislation, small eBay sellers must obey the law, tracking and comply with the national more than 9600 different tax jurisdiction to tax law. The sellers create extremely large file processing and tax burden, also may let sellers face since America’s any state tax authorities, may to the investigation of the company’s audit and prosecution.
Mr Doner believes that the $ten million exclusion clause will protect this kind of small sellers. He further noted that amazon turnover reached $ten million of every ninety minutes. So he think the business model and the cost is different from the one hundred million yuan of big companies, small businesses should not face the same tax liability.
who will support?
the proposal’s supporters, including Target, the national retail federation, e-commerce, a retail giant bibcock amazon, small retail entities shops, President barack Obama and republican democratic lawmakers from both parties.
supporters, said the proposal would be the network with the entity shop in the same starting points. Has stores in the United States have large retailers complain, only the online store retailers selling the same thing but I do not need a sales tax, quite unfair for them.
supporters say the current sales tax inconsistencies, can hold many traditional store display, just play out to the store real customers, but it turned to buy on the net to avoid pay sales tax, this may also be the entities large bookstores Boarders shut down.
why amazon defect
the whole process, is the most interesting of the amazon. The company’s position in this proposal, from fight to 180 degrees, later to become the most powerful advocate the proposal. A few years ago, when California announced it would charge states of Internet marketers have entity shop sales, amazon saying scorched-earth policy will be adopted, even threatened to shut down its all Internet companies in California.
a few years later, amazon is suddenly, not only to support online tax, even actively lobbying in Washington. Why the reason for the change?
amazon sharply competitive advantage is no longer founded in don’t have to pay the sales tax on the basis of. On many products, regardless of the add don’t add the sales tax, amazon will cost pressure to the lower than other competitors. Huge warehouse distribution center without any decoration, location is optional in the wild, compared to traditional businesses, amazon it can more efficient delivery to the customer’s hands.
amazon does not exempt from sales tax is needed to compete with traditional business, it is big quantity and convenience. Solution is in the center of the to build more close to the customer’s warehouse, and on the same day delivery service will become the norm in the metropolitan area. Under the current laws and regulations, to build a distribution center in more places, also means that must pay sales tax in more states.
if you have to pay anyway, so why opponents don’t have to pay?
key problem in the future market
if the careful analysis of the two arguments, the proposal does not actually bring states imagined large tax. Supporters believe it will be more than $23 billion a year of sales tax; Opponents say the amount is only about $3 billion. But even with $23 billion, that number is just the United States in 2012 and zero point one percent of the total amount of local government, additional revenues of $23 billion is a drop in the bucket.
so the center of gravity of the problem lies not in the budget, but business issues: it tells us that the future of the market in where? The answer is simple. Large retailers such as amazon, instead of eBay and other small businesses. Those who complain of not being able to compete with big companies such as amazon, unless can benefit from sales tax on small jewelry store and other small enterprises, must understand a cruel fact, net purchase and sales, won’t make amazon fair competition, and small shops will only make amazon stronger.
the proposal does not actually bring states imagined large tax. Supporters believe it will be more than $23 billion a year of sales tax; Opponents say the amount is only about $3 billion. But even with $23 billion, that number is just the United States in 2012 and zero point one percent of the total amount of local government, additional revenues of $23 billion is a drop in the bucket. So the center of gravity of the problem lies not in the budget, but the business problem: it tells us that the future of the market in where? The answer is simple. Large retailers such as amazon, instead of eBay and other small businesses.
source: tencent technology