In a move to help small scale online retailers and startup businesses at eBay avoid extra expenses, the company’s CEO has created a strategy to cut down on sales tax. John Donahoe: eBay CEO argues that online sales tax policies can be expensive for retailers who just started their business through the company’s website.

How eBay’s John Donahoe is Helping Retailers Cut Down on Online Sales Tax?

People like John Donahoe are a rare breed these days. As eBay’s CEO, the guy is on his toes to create a mass scale petition against sales tax policies. He is currently trying to marshal eBay users to join hands so that together they can help him change federal sales tax legislation.

According to insiders from the U.S. Senate, if the sales tax legislation bill is approved, it will mean the downfall of small scale online retailers. In other words, you, as a seller, will have to pay national internet sales tax as long as you are out there selling things online! John Donahoe started contacting all eBay sellers through emails to help create not only a buzz, but awareness among users who have no knowledge of internet sales tax policies.

The U.S. Senate will be voting for or against the proposed legislation, as it depends on the number of supporters. Businesses with less than $1 million sales will be exempt from this legislation. If you were to ask anyone, they’ll agree that the newly suggested policies are bluntly discriminating against medium to small level retailers.

In an email to eBay sellers, John Donahoe writes, “This legislation treats you and big multi-billion dollar online retailers — such as Amazon –exactly the same. Those fighting for this change refuse to acknowledge that the burden on businesses like yours is far greater than for a big national retailer.”

What Amazon, Best Buy and Walmart are saying about Online Sales Tax Legislation?

The bigwigs from Amazon, Macy’s, Walmart and Best Buy are supportive of the recently proposed legislation. On an individual level, these companies believe that such an Act, if approved, would “level playing field” for company owners.

Apparently, members of the Marketplace Fairness Coalition (supporters of this yet to be approved legislation) are saying, “Mr. Donahoe wants you to believe that the Marketplace Fairness Act would somehow penalize small online businesses. This is disingenuous because it overlooks the fact that this legislation exempts small sellers with less than one-million dollars in annual remote sales to address concerns about small business compliance.

To put this in perspective: the Marketplace Fairness Act exempts 99 percent of all sellers and over 40 percent of all online commerce.”

If you are an online retailer, no matter how much revenue you’re generating, what would be your stance on these policies? Let us know through the comments below.