Few things regarding above post:
- I'm 90% sure Trump's feud with Amazon begins and ends with the fact Bozos owns Washington Post.
- TRU's failure is more about having management that didn't have the company's future in mind than any sort of competition failure.
- Is online sales tax not a thing? I'm looking at my past amazon receipts, and I see a sales tax there and around 10%. I seem to recall online sales tax might have been a California only thing, so I'm actually unsure.
In regards to your question about online sales taxes, the current U.S. Supreme Court case with South Dakota v. Wayfair is actually related to a 1992 case known as Quill v. North Dakota, where North Dakota tried to force Quill (which was a mail-order shop based outside the state) to pay taxes for sales shipped into the state. Eventually the U.S. Supreme Court ruled in favor of Quill saying that states cannot charge sales taxes to a "vendor whose only contacts with the taxing state are by mail or common carrier".
Although the ruling was made in a different era, it would seem to apply to online retailers. The real question is whether or not If the nature of the game has changed to the point where the U.S. Supreme Court needs to reconsider the rule. The ruling that was made in favor of Quill by the U.S. Supreme Court is actually an interpretation of the U.S. Constitution's Commerce Clause, whose concerned with the federal government's ability to regulate the national economy without interference from the states.
Because Quill is merely an interpretation of the Commerce Clause, the U.S. Supreme Court could uphold the U.S. Constitution and still throw out Quill's physical presence requirement. So what are the Constitutional boundaries? Well for one, the Commerce Clause limits states' taxing of sales between two or more states. In other words, the Commerce Clause doesn't care about a regular sale that happens entirely within one state, but it's triggered when a sale involves two or more states ("interstate").
The Commerce Clause doesn't forbid taxes on any interstate sale as it only prohibits those taxes which would interfere with the federal government's plans to regulate the national economy. The U.S. Supreme Court has tried to narrow this down over time when in 1977 they came up with a four-factor analysis to determine whether or not the Commerce Clause was being violated by a state tax (Complete Auto Transit v. Brady). Those are the four factors listed in our infographic. Now the fourth "substantial nexus" factor is where South Dakota v. Wayfair's controversy lies.
Quill which came 15 years after the U.S. Supreme Court established the 4-part test, decided to narrow the
substantial nexus factor even further. Now apparently the substantial nexus factor has something to do with a company's footprint in the state meaning that a state cannot tax a company that isn't substantially connected to the state in a certain way. Quill decided that having a substantial connection with a state must at least include a physical presence there and the U.S. Supreme Court thought that the clarity of the physical presence requirement outweighed its potential arbitrariness.
They later admitted that the rule "appears artificial at its edges" but said the artificiality "is more than offset by the benefits of a clear rule". This June they will decide whether to reformulate the
substantial nexus requirement and ditch the physical presence requirement. Perhaps they'll find that a substantial economic connection with a state is more apt than a physical presence. They might choose to leave the
physical presence requirement intact but choose to redefine it. For example, Massachusetts has declared that companies that place cookies on Massachusetts' residents computers are physically present in the state.
Bottom line is that If the U.S. Supreme Court overrules Quill, or otherwise reformulates the substantial nexus requirement to include broader relationships between companies and states, then consumers will end up paying more for online purchases where states will gain a significant amount of money to spend on general budget items like public schools, departments, and programs. Online retailers like eBay would go out of business from having to overcharge their products because they would be required by law to collect sales taxes nationwide since tax rates and rules tend to vary by state, city, and county.
So how do larger retailers expect all businesses to play by the same set of rules If no one's able to shop online anymore from everything being too expensive?