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The Marketplace Fairness Act is an outdated proposal to raise taxes on Internet businesses that have, and continue, to rapidly change. Pennsylvania is already collecting sales tax from the largest Internet retailers and the proposed legislation does nothing to help main street businesses compete against those large retailers.
Most main street businesses now have web sites and will be further burdened with red tape and paper work. Each product will have to be assigned a tax category. Each customer's address will have to be validated. Existing technology is neither simple nor proven. It is difficult for main street merchants to install and learn, train employees, log-in and run reports, remit taxes, provide accounting reports and withstand an audit.
The sales tax technology is prone to network timeouts and security risks. The technologies can actually hurt main street businesses ability to grow and make more sales. A local Internet retailer is expanding in Gap providing 300 construction jobs and 500 employees. Another Lititz based retailer is expanding operations and will employ 380 people. The best way to raise revenue is called growth.