Government never works when it gets into the business of picking winners and losers. Retailers, from the small to the large, have a competitive spirit and embody the free market that makes America and Georgia a great place to live and build a business.
Unfortunately, external forces such as the government can create advantages or disadvantages by allowing for some companies to play by a different set of rules than competitors.
There is an issue looming of improper government bias and a policy change on the horizon that has serious repercussions for all Georgia consumers, businesses and our economy as a whole.
The issue can be summed up in one word— e-fairness.
E-fairness refers to the current disparity between how online-only businesses are treated in comparison to our local, Georgia brick-and-mortar establishments — and the need to level the playing field.
Currently, Internet giants like Amazon are able to exploit an online sales tax loophole to circumvent collecting and remitting our state sales tax. This allows them to offer unfairly competitive pricing that puts our local retailers in harm’s way.
This is an unwise, outdated policy. It needs to be corrected sooner rather than later.
That is why e-fairness legislation in Georgia is imperative. We have to address this unfair advantage by requiring Internet-only retailers to comply with Georgia’s existing tax laws, and begin collecting and remitting our state’s sales tax.
It’s important to note that closing this loophole would not create a new tax, as many critics have alleged.
Most Georgia consumers don’t know it, but when they shop online and are not charged sales tax at the point of purchase, they are legally obligated to pay a use tax on the item along with their annual taxes in April. These often go unpaid.
E-fairness legislation would allow for a simpler, more logical means of collecting an existing tax.
It shifts the responsibility burden away from the consumer and to the business.
Closing the tax loophole that allows Internet-only companies to avoid collecting sales tax would help give Georgia’s businesses a fighting chance.
Healthy competition is what drives business growth and governs our free-market system; however, the current tax structure does not represent free-market values.
Rather, it is an example of the government picking winners and losers.
That’s not what this country was built on, and that’s why we need e-fairness to allow all businesses — online or on Main Street — to compete on the same level.
Passing fairness legislation in Georgia should be a priority for our General Assembly.
Gov. Nathan Deal already has made it clear that he will pursue legislation to close the online sales tax loophole this year.
We look forward to working with him on the issue.
We hope legislators will join us in our call for e-fairness.
It would benefit local businesses, help protect consumers, and bolster Georgia’s ailing economy.
Rick McAllister is president of the Georgia Retailers Association.
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