Right now, Congress is considering the Marketplace Fairness Act, a bill that would change US tax law to allow states to collect taxes from online retailers, even if those retailers are physically located outside of the state of the sale. The Act is backed by the Alliance for Main Street Fairness, a public relations groups which argues that existing tax loopholes disadvantage the mom-and-pop brick-and-mortar small businesses of American “Main Street” by requiring them to pass the cost of state taxes onto their patrons, while online retailers can charge lower prices for the same goods.
Ironically, however, the Alliance for Main Street Fairness doesn’t actually just represent small business; instead, it includes among its members big box-store retailers such as Target, Walmart, Best Buy, Home Depot and JC Penney.
This month the Alliance for Main Street Fairness has set its sights on lobbying for the Marketplace Fairness Act using ads that specifically target Alibaba, a Chinese eBay-style online retailer. These ads draw upon Yellow Peril fears by casting a Chinese face as the destroyer of Main Street. In addition to the ad embedded above, the group has released a cartoon showing a red wrecking ball emblazoned with the name “Alibaba” and the yellow stars of the Chinese flag smashing the windows of an American Main Street shop (after the jump).