TaxCloud is a sales tax calculation software made by the for-profit company FedTax. If the Marketplace Fairness Act passes, tens of thousands of small businesses will be forced to use either FedTax’s TaxCloud software or software provided by one of the other five certified software providers (all of them for-profit businesses).
FedTax would likely profit handsomely if the Marketplace Fairness Act (MFA) were to pass. In Fact, collectively, certified software providers could make hundreds of millions of dollars at the expense of taxpayers and small businesses. One of the other certified software providers, Avalara, has already raised around $49 million in Venture Capital funds from Benaroya, Pioneer Venture Partners, and Sageview Capital. One venture investor said that the VCs believe the MFA could be “a big driver and a catalyst for the industry.” David Campbell, FedTax CEO, appears to be pursuing big investment dollars, too.
“We are building contacts with institutional investors,” – David Campbell, CEO of FedTax.
David Campbell and his company FedTax will benefit if the MFA passes, so we can understand his enthusiasm for the controversial legislation. But in our opinion Campbell is more than merely enthusiastic. Continue Reading →