Amazon.com, Inc. (AMZN), eBay Inc (EBAY): Will a New Online Sales Tax Really Destroy Small Business?

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Tax grab bag
While collecting taxes may be a burden for smaller online retailers, it’s hardly a death blow to such businesses. For one thing, the bill applies only to merchants generating more than $1 million in annual sales. Nevertheless, eBay Inc (NASDAQ:EBAY) argues that if passed, only businesses with $10 million or more in annual out-of-state revenue should be required to collect sales tax, or companies with 50 or more employees.

Whichever way small business is described in the bill, I doubt the end result will be as dire as eBay would have us believe. Still, Amazon.com, Inc. (NASDAQ:AMZN) is far better prepared for this tax legislation, as it’s already collecting sales tax in some states.

The article Will a New Online Sales Tax Really Destroy Small Business? originally appeared on Fool.com and is written by Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Amazon.com and eBay Inc (NASDAQ:EBAY). The Motley Fool recommends and owns shares of Amazon.com and eBay.

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