Online sales tax would hurt minorities, women, says MMTC
An online sales tax bill will disproportionately hurt minorities and women who own small businesses, the Minority Media Telecommunications Council (MMTC) said.
MMTC Vice President Nicol Turner-Lee criticized the Marketplace Fairness Act -- passed by the Senate earlier this year and awaiting consideration in the House -- saying its small business exemption of $1 million is inadequate to protect minorities and women. Brick-and-mortar stores claim the Marketplace Fairness Act would eliminate the unfair advantage online retailers currently have because online retailers don’t have to collect a sales tax. Small-business advocates say the bill’s $1 million exemption is set too low, and it would place undue compliance burdens on small businesses. The current small-business exemption in the Marketplace Fairness Act could keep minority- and women-owned businesses from operating across state lines, Turner-Lee said. To ensure that minority- and women-owned businesses aren’t disproportionately harmed under an online sales tax bill, “we need to think carefully about coming up with a more accurate definition of small businesses,” she said.
Online sales tax would hurt minorities, women, says MMTC