Alibaba helps the U.S. economy

Published December 2, 2014 10:00am ET



Brick-and-mortar retailers are growing increasingly concerned about Alibaba Group, the Chinese e-commerce company that had the largest initial public offering ever in September. The Alliance for Main Street Fairness, a coalition of business owners that supports the Marketplace Fairness Act, released an ad Sunday that calls on Congress to require online retailers to collect state sales tax. “Thanks to the online sales tax loophole, this Chinese company will decimate our local retailers,” the ad said of Alibaba.

The Alliance for Main Street Fairness is trying to argue that Alibaba is bad for the United States economy, especially because of its ability to sell goods to Americans without collecting sales tax. However, Alibaba.com, the primary company of the Alibaba Group, is not a bigger, Chinese version of Amazon. Rather, Alibaba.com is a business-to-business service, connecting wholesale buyers and suppliers around the world, including the United States.

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