Lets put this in perspective a bit.
First off its true that Ebay is making money off the state sales tax money collected. This tax money is added to the amount that Ebay charges the sellers final value fee on. That tax money is then removed from that figure prior to creating a 1099 for the seller. (at least according to all the documentation I have read.)
Second Back in the earlt 2000's Selling on Ebay was more fun, more affordable . Sellers had more say and more rights. You sold your items and the cost of selling in the end with both paypal and Ebay fees was around 5% grand total.
In the years since Ebay has grown to use its sellers pretty much ike a "herd of cattle". Sellers dont have much choice other than to comply and sign on with each new set of rules that Ebay dictates. Otherwise , if you dont sign, you dont sell. No other choice available. We all sign and sell because there is no other place to go and get the bids on most of the stuff we sell. We can gripe, but we dont have any teeth or a leg to stand on to change it... and no where else to go as a really viable alternative. Thats the nature of a monopoly, regardless of the nature of its coming into being.
tree. This is the big one that is yet unexplored. Ebay is using the states sales tax money to make money for itself. They add the sales tax money to the sellers sales, charge their fees, then pull that money back off the sellers sales before paying the sellers or reporting the sellers money on a 1099. (again based of ebay literature I have read)
Now, Ebay is likely paying income tax on the money they make off the states sales tax dollars. However, the question is are they(Ebay) paying the states anything for that use of those sales tax dollars being collected by Ebay?...and are that states aware of Ebay using their sales tax dollars being collected to make money for themselves?
While Ebay sellers are a defenseless herd of cattle, the States are a different matter entirely. They have legs to stand on and teeth to bite with.
