US electric trader or farewell tax exemption era

In the highly taxed United States, the Internet sales platform has become a good way for many companies to save costs and enhance price competitiveness, but the dream may soon be over. local time May 6, the U.S. Senate voted to introduce an online sales tax bill to increase local government revenue.

Smooth Pass the Senate

According to the Xinhua news agency, the United States Senate on the day of 69 votes to 27 votes approved by the Maik Enzi and other federal senators, such as the "Market Fairness Bill", the bill will authorize all U.S. state governments to companies through the network, radio and television advertising sales of products levy sales tax. But if the bill is to become law, it needs to be approved by the Republican-controlled House of Representatives. Under the laws of the United States, the state can only tax retailers who have physical stores in the state.

This may be bad news for the American public, but it can be a huge financial aid to the American local government. Last year, U.S. states lost 23 billion of billions of dollars in tax revenues, according to a study published by 3 Business school professors at the University of Tennessee. Of these, about 11.4 billion dollars were not taxed on internet sales, and the rest came from directories, mail orders and telephone subscriptions. Once the Fair bill is approved by the House of Representatives and becomes law, the net online sales tax will open up a new source of more than $20 billion trillion annually for U.S. local governments.

For physical retailers, the day of elated is finally near. As online retailers have saved the cost of paying taxes and made more concessions on commodity prices, consumers are flocking to online stores, and the days of physical retailers have become increasingly difficult. The US retail alliance is lobbying Congress to make the bill a law. President Barack Obama, Warren Buffett, Microsoft chairman Bill Gates, and Matthew Shaw, chairman of the American Federation of Retailers, are also supporters of the bill.

The House of Representatives or add a blockage

Despite the confidence of physical retailers, the bill is likely to be blocked in the house because Republicans view it as a tax-raising bill. Robert Goodlatte, chairman of the House Judiciary Committee, said it had reservations about the legislation because of the complexity of the levy and the potential impact on small businesses.

It is understood that House Speaker John Boehner does not have a specific vote on the bill and the plan to hold hearings. Reuters quoted a senior Republican aide as saying that Boehner intended to send the proposal before the House Judiciary Committee for a hearing before voting. The Senate skipped this step before the vote.

In the view of ebay, the new law cannot be bypassed. Amazon, an online retailer with legal constraints, has expressed support for the bill, but is actively campaigning with ebay to try to raise the tax exemption from $1 million trillion to $10 million. It is understood that the Fair Act only empowers states to tax online sales, not to impose taxes, and to exempt online retailers with annual sales of 1 million US dollars (including 1 million US dollars).

China's implementation is yet to be

Lijian, deputy Dean of the School of Economics at Fudan University, said in an interview with the International finance daily that if the US passed the Fair bill, it could affect the global layout of e-commerce companies and have a significant impact on Chinese IT companies listed in the US. Lijian analysis, China's listing in the U.S. overseas concept stocks are mostly IT companies, which e-commerce companies or are significantly affected. Meanwhile, companies such as Amazon and ebay are likely to shift the focus of development to Asia-Pacific countries such as China, thanks to high U.S. tax rates.

In addition, the US move would be considered exemplary, or be referenced by other countries, including China. Since the two sessions this year, the topic of China's "electricity tax" has been debated. Suning Chairman Jindong in the two sessions during the "Electricity business Tax theory", is believed to be directed at the net shopping stronghold Taobao. But in the opinion of Zhang Yanlai, a member of the China Electronic Commerce Association's Policy Law Committee, it is still too early to implement fully in China, although the prevailing view is that it is a general trend to levy taxes on electricity dealers.

Taobao Mall "surprised flagship store," the manager Yiyi to the international financial newspaper reporter said, "(tax) for us, is tantamount to sucking blood." He said that at present Taobao's a hundred thousand of service charge to the merchant has made many businesses on the verge of making ends meet, and if an online sales tax continues to be levied, it will have a devastating impact on a large number of small and medium sellers.