If the Marketplace Fairness Act passes through Congress, more online retailers would have to collect sales tax at the point of purchase. Would you buy less stuff online if that becomes the case? If yes, you're not alone — about 44% of people said they would cut back on their Internet shopping if the so-called Internet Sales Tax becomes reality, according to a study.
The Marketplace Fairness Act would require online retailers making more than $1 million annually to collect sales tax from customers in states with sales tax and remit them to the appropriate state. Currently, such customers are expected to report online purchases in their annual tax filings, but few actually do. The MFA easily passed the Senate a few weeks ago, but many observers are expecting slower goings in the House.
If the bill passes, the reaction would be especially dramatic among the younger 18-25 crowd. About 75% of study participants told researchers they would cut back on Internet buying and instead shop at local brick-and-mortar stores.
Overall, 61% of voters said they disagreed with the Marketplace Fairness Act (MFA), while 39% responded favorably. Why the opposition? More than half of respondents — 60% — said the bill would be bad for economic growth. Those against the bill often argue it would stifle online retailers, while the MFA's supporters say it would create a more even playing field for online sellers and local shops.
For more results from the study, which was sponsored by electronic postage software company Endicia, see the below infographic.
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