SCOTUS Says States Can Collect Sales Tax on Online Purchases Nationwide

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Internet Company Sales Tax Fiasco

The Supreme Court ruled Thursday states could collect sales tax on certain out-of-state online purchases. This decision promises to add significant costs to shoppers who purchase goods and services online.

BREAKING NEWS: Supreme Court rules 5-4 that states can collect sales tax on internet purchases, even if the seller has no physical presence in the buyer’s state
— Fox News (@FoxNews) June 21, 2018 

The 5-4 SCOTUS ruling stated that current laws are outdated as online commerce has allowed businesses to exist and operate without in most cases a physical presence in a given geographic location.

The Rules Changed

Justice Anthony Kennedy penned an opinion in regards to this case and indicated the rules needed to be changed to align with the current realities of online commerce.

“When the day-to-day functions of marketing and distribution in the modern economy are considered, it is all the more evident that the physical presence rule is artificial in its entirety,” Kennedy said.

The SCOTUS 1992 Quill Corp. v. North Dakota decision involving catalog sales had shielded retailers from tax-collection duties if they didn’t have a physical presence in a state.
The reaction to this decision on has had an immediate impact on retailers Thursday afternoon as several online merchants have seen their shares down on Wall Street.

Amazon, Ebay, Wayfair, Etsy shares fall after Supreme Court rules that states can require internet retailers to collect sales tax
— CNBC Now (@CNBCnow) June 21, 2018 

Taxation is Theft

The ramifications of this SCOTUS decision will be far-reaching as consumers may not find the online deals they have been accustomed to. Ron Paul, former congressman from Texas condemned the move saying this will “bleed Americans dry”.

Internet Sales Taxes ... coming to a state near you ... And the government bubble continues to bleed Americans dry.
— Ron Paul (@RonPaul) June 21, 2018 

This decision may prove to be a respite for traditional brick-and-mortar stores who have been at a disadvantage during the age of online commerce.

Supreme Court Rules States Can Require Online Merchants to Collect Sales
— The DBG Agency (@DBGAgency) June 21, 2018 

It remains to be seen however whether or not this decision will help brick-and-mortar stores such as Sears and JC Penney recover from years of economic disadvantage. Stay tuned to the New Right Network as this story continues to develop.

Jake Highwell / Writer

I am a political pundit and equal justice advocate with two decades of journalistic experience. Currently residing in the Democratic stronghold of Chicago and a recovering Obama voter, I strive to bring insight and commentary to the MAGA Nation.
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