Bob sells toy for $100. PayPal rate is 2.9% for a typical scenario plus the $0.30 transaction fee. If Bob charges 0% tax through eBay... PayPal will take $3.20 from his $100 bill. If Bob adds 10% tax on his $100 through eBay, eBay keeps the $10 tax (after allowing it to digitally transcend from PayPal and back). PayPal is charging you and additional $0.29 for the $10 tax you never saw. So Bob's total fee for this example with tax automatically added by eBay and automatically given back to eBay from PayPal is now $3.49 instead of $3.20. So basically, if you don't charge tax (which is not always possible), you will be charged less by PayPal. So the people that are complaining have every right to do so. If a lawyer is reading this and wants to get rich quick... This class action lawsuit is a no-brainer and from what I've seen myself and the fact the the seller is not involved in the decision to tax in certain cases.... It is simply a money making scheme in heavy favor of PayPal and most likely eBay too for allowing PayPal to take more money when it is not necessary. A seller shouldn't have to not charge tax to not be charged extra money. Think about that for a second.
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