Online sales tax would hurt minorities, women, says MMTC

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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