Actually your calculations are a bit off. For the $110 item you describe that is gross revenue. Out of that you take the COGS (what the seller paid for it), shipping cost, fees, packing materials, POV and a whole list of other potential expenses to get to the net income. Lets say the net is $30, this is what you pay taxes on and the % you are taxed depends on the bracket you fall into.
I believe a lot of ecommerce sites will loose a lot of casual sellers like yourself. I also believe a lot of sellers, at least those that have not been doing business cost analysis, will begin to see what their actual returns are from selling on eBay and they will either raise their prices to increase their profits or find other alternative ways to sell their items to avoid getting taxed to death. This plan may very well backfire on the politicians who are/were hoping to cover all these new expenses with increased tax revenue that may never materialize. In fact there is the potential for it to have an adverse impact on the tax revenues and for the amount collected to shrink.
It should be real interesting to see the eBay quarterly reports beginning with the first quarter of 2022 and the following couple of years.
