How many businesses might be ensnared by the Marketplace Fairness Act/MITFA? Way more than most might guess.
350,000 – 3,500,000 retailers is their market – according to this elevator pitch 90 second video regarding Taxcloud’s business prospects from October 2011. Taxcloud is 1 of 6 certified service providers (CSPs) who will see a windfall in new business if the MFA/MITFA passes.
Actually the phrase was “350,000 to 3.5 million retailers will be impacted by the new law”. And “suggesting an opportunity of 1.3 billion dollars for Fedtax.”
They’re embarrassed enough by this FAIR USE 19 second snippet of the whole video that they’ve repeatedly filed frivolous DMCA notices to pull down the video. This copy is in Iceland – good luck with taking this one down. Transcript down below too.
US Vimeo – back up.
I doubt this includes true wholesaler/manufacturers as someone who only has exempt transactions wouldn’t be someone that would generate revenues for them. More businesses might be impacted even than this number. Not sure if this estimate includes a $1 million dollar small business exemption or a lower one – or a much lower one like the pro-side plans on moving to anyway down the road. Boil the frog slowly!
So is it puffery? The real truth about how many would be impacted by the Marketplace Fairness Act’s unprecedented expansion of states powers to reach across their borders? Somewhere in-between? I hope not to find out.
Proponents have tried to soft pedal with completely unbelievably small numbers how many will be affected by the Marketplace Fairness Act. I believe these numbers have embarrassed the pro-side and they’re freaking out. Sadly, I do believe the numbers.
Taxcloud Pitch – UPDATE: TAXCLOUD PULLED THE VIDEO (10/25/14). I’ll get a copy up soon and the transcript is below.
Update 2: 11/1/2014 – Taxcloud filed a DMCA takedown notice against the video. I hope to have it up very shortly and won’t be silenced by the attempts. Transcript below anyway.
Update 3: 11/1/2014 – Created new video – Less than 20 second excerpt of the video that specifically leads up to the topic and states the number. This video is absolutely covered by fair use. §512(f) provides very severe penalties for those who knowingly file false DMCA notices. See also Open Policy Group v. Diebold.
Update 4: 11/2/14 – and of course, Fedtax/Taxcloud again failed a DMCA claim, clearly frivolous.
Addendum: transcript of the whole video
David: You would have to be living under a rock to not have noticed the state of California dispute with Amazon.com about collecting sales tax on online purchases and the fight is underway in other states as well.
Daniela: And this fight is underway in other states as well even in Connecticut and the numbers add up quickly over 23 billion dollars.
Joan: Over 23 billion dollars uncollected every year. Online retailers don’t collect sales tax today because 44 years ago the Supreme Court said it was too difficult.
Carl: Too difficult for remote retailers then mailer catalogs to keep track of every jurisdiction across the country.
Erin: No one would disagree that a lot has changed since then. That’s where Tax Cloud comes in.
Leslie: TaxCloud calculates sales tax for every address.
Paul: Every address across the country in under 13 milliseconds. And we also prepare and submit returns, submit proceeds and even…
Chris: Even respond to audits. And we do all of this for free.
Chris: We can offer TaxCloud for free for two reasons. One, we are paid by the states to provide the service and two, we have an extremely low operating cost made possible by our cloud computing infrastructure.
David: Now the fight in California has moved to Washington, DC.
Paul: Federal legislation has been introduced that would compel online retailers to collect sales tax.
Joan: Just like local retailers have to do. Between 350,000….
Daniela: … and 3.5 million retailers will be impacted by the new law suggesting in the annual opportunity of over 1.3 billion dollars for Fed Tax.
Also on Vimeo (now pulled via DMCA too)