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Hi everyone I'm Diana -- -- foxnews.com live business hour and a bill.
To -- fifth states in getting sales tax for all the online purchases -- all making is now on its way to the house after passing the senate.
On Monday and we had every up Carroll is here from Fox Business to talk a little bit about what this means for small businesses soda and -- every I know that.
There's sort of a divide between who is in favor of this you've got Amazon on one hand actually being in favor and another big chains like Wal-Mart being against it.
How does this affect the little guy so it depends what little I were talking about.
Brick and mortar small businesses are in favor because they say that they have been unfairly penalize.
By the fact that online retailers haven't for the most part needed to collect sales tax.
So you get this effect called show -- where.
Shoppers -- going to east African mortar stores check out the good and then my online where they don't have to -- that I missed that by an Amazon.
-- Wal-Mart is for a best -- for an obvious big brick and Monday -- -- because people are showing up like -- -- going to their stores in the buying online and a son kind of a surprise that they are -- -- -- -- it would make things less complicated if they know where they have to pay taxes how.
But eBay as you said.
One of the big ones that came out against -- -- because they have small sellers you have to deal with this now.
Exactly so each -- is not a -- that's because they want to protect.
They're small sellers but the interesting thing about Amazon is that.
The reason up there for that bell is.
Because if you have a physical location in this state.
Then you need to collect sales tax Amazon is moving toward one day delivery.
They're opening up these distribution centers all over the country might as well haven't they might as well -- -- and their feeling is we have the infrastructure and the money.
To be able to handle this and a little bags down and actually might keep them competitive advantage if your candidate that you have to meet a certain criteria I think it's a million dollars worth of products in each state in order to -- do abide by this yes it's a million dollars for national.
But some are worried that that it's been quite.
Large and now we're -- it should be ten million and it should be no more than fifty employees or some other senate's so I spoke with Chris Phillips he is an accounting specialists do.
Focuses on cloud accounting practices and he says that for a one million dollar online retailer you might only have.
You're really at tiny business and you might only emergence of 10% thing so these -- You know huge multi million dollar businesses.
-- even though the one million dollar.
-- make -- high not something that's partly.
And then -- -- a day I know there's some software that they were saying that the states will have to provide the companies with software but the companies are saying that's.
Might help in certain respects but that's not gonna -- gonna tell us whether bubble gum is considered of -- in one skater candy and another taxable or not.
Have you gotten any feedback on and on how they're looking at that aspect of it yet so I spoke way.
CEO of a company called that tax and then one of the companies that provide.
These appointments announced that stem cell popularly.
The sales tax for online retailers and he says that he's software is up to speed.
That'll it will calculate the sales tax and thirteen milliseconds.
He said after the bears do you like -- that it but it's still going to be a lot of paperwork and a lot of worry for these small business -- You are saying that.
They're worried about getting audited if youth -- you.
Customers in 25 state that puts -- the rest of -- five.
Sales tax audits which -- last two months because -- a year.
And it's a lot of headache and a lot of work.
Philips also the same thing that the brick and -- in -- area have to worry about and that's you know that's sort of the other side of it is people are saying what those online stores aren't mentioning is that.
Not having -- -- makes their products cheaper which comes at the disadvantage of the brick and -- small businesses that have to compete with them that they give you a response and a so the brick and mortar businesses they only have to deal with.
One -- else acts.
And one possible audit.
Whereas -- you're online retailer you're opening yourself up to audience from all over the country.
Every single state where -- -- sales and do.
Your parents and I sense a lot of work permit customers all of the countries that pay taxes all over the country -- That that would be thinking -- and then so it's passed the senate now on its way to the house.
I know in the house control Republicans and some of the Republicans are saying this is attacks that it faces a little a little more of that barrier there as those.
How how is this expected to it play out so big Judiciary Committee chairman Bob good -- He sad that.
There needs to be a lot more consideration and it passed very quickly in -- and -- He said that it's going to be a much more thoughtful process so I'm not expecting to see.
Any movement no one's really expecting this can happen very quickly.
He thinks that there still needs to be a lot more simplification.
Because as we -- 45 states charge sales tax in some states.
Like Alabama you have a different sounds I think every single count it it is raising simplified attacks.
It altogether in -- all of our lives easier.
Eric every Carol the article is up now -- -- -- -- -- up they articles already up on Fox Business -- -- can read all about.
How this online sales tax bill could affect small businesses.
Again that's our you can -- the -- at -- small business.
Thanks everybody get real -- -- moving on -- yeah great -- everybody thanks so much for joining us every weekend and will appear Monday.
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