Tech-enabled Small Businesses Speak Out Against Marketplace Fairness Act

May 15, 2014

This week, two tech-enabled small businesses were featured in their local papers to highlight the growing concern among the small business community with the so-called Marketplace Fairness Act pending in Congress.

David Lahme, president and co-founder of TradePort USA in Somersworth, NH, employs 14 people and helps manufacturers, and distributors recoup their investment on returned, open box, distressed, and overstock consumer electronics products.  As a small business located in a non-sales tax state, Lahme is in a unique position compared to small businesses located in other states.  If the Marketplace Fairness Act were to pass, David’s business would feel all of the burden, but his state and local community would not get any of the perceived benefits.  “It’s been touted as ’no big deal’ because the 45 other states have a sales tax,” Lahme said. “We’re kind of a minority because the rest of the states are collecting (sales) taxes.”

Ken Bengson, owner of Countryside Pet Supply in West Plains, MO explained how the Internet has actually benefited his small business and that he worries what would happen if the Marketplace Fairness Act were to pass, making it more costly to have an online presence.  “Small businesses are no longer just storefronts on Main Street.  Many of today’s small businesses use the Internet to operate both in local communities and globally”, said Bengson.   However, Bengson went on to explain that with only nine-full time employees complying with the Marketplace Fairness Act would dominate his time and hamper his ability to compete with large retailers.

Learn more about the Marketplace Fairness Act and how it would affect small businesses, like TradePort USA and Countryside Pet Supply.