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Marketplace Fairness Act and the Grey Market

Marketplace Fairness Act and the Grey Market

The Marketplace Fairness Act would subject retailers to sales tax audits from 50 different states and tax laws of nearly 10,000 local tax authorities. Proponents of this bill claim that this levels the playing field between internet merchants, such as Ebay or Amazon with brick and mortar retailers like Walmart or Best Buy. Critics point out that it only boosts the tax bill for America’s consumers and allows state governments to tax businesses not within their jurisdiction.