The FairTax Plan is a proposal that basically would replace payroll and income taxes and consumers would only pay taxes on items they purchase as individuals. Payroll and income taxes would be a thing of the past. The FairTax Plan proposes that federal retail tax is collected at the final point of sale on personal consumer goods and services. Consumers would only pay taxes for what they consume, not on what they earn.
So, what does this have to do with eBay? Used goods are not taxed under the FairTax proposal. The concept here is that sales tax were already paid on an item when it was new, so consumers wouldn't be taxed again if they bought the item used. In other words, if the FairTax Plan is passed, used items purchased at garage sales, thrift stores, flea markets, and on eBay are exempt from the tax. This could mean huge numbers of people coming to eBay to purchase gently used items to avoid having to pay sales tax.
If you are an eBay seller who already sells gently used items, the FairTax Plan could be your new best friend. Not only will you, the seller, save money when purchasing your items from thrift stores, but your customers will get a break on their purchases from you. The FairTax Plan could make eBay a very attractive option for purchasing consumer goods. What is your opinion on the FairTax Plan? Are you in favor of or against it? Post your comments!
Great post! I'm a huge supporter of the FairTax and appreciate that you're helping to get the word out. It's really a very simple plan but sometimes hard to grasp since we're all so used to thinking the 1040 way. You're right that the majority of eBay sellers should be in a very good position if (when!) this plan passes. I hope all your readers keep this in mind and help support the FairTax plan by continuing to educate themselves and sharing this great plan with their friends!
Posted by: Susan | January 12, 2008 4:17 PM | Permalink to Comment