This June, SCOTUS upped the price of online shopping with the decision in SOUTH DAKOTA v. WAYFAIR, INC. States now have the right to require online sellers to collect sales tax for the state--regardless of their physical presence in the state--because of the large amount of states’ revenue that is channeled thusly. The foundation of the judgement was the Commerce Clause, which was interpreted to give states the right to charge/earn sales tax on out-of-state/online purchases. South Dakota claimed that the precedents, Bellas Hess and Quill, were out-of-date and unconstitutional because of the vast expansion of the Internet and the drastic impact of online shopping on states’ tax revenue. So, the big question is: Will your shopping bill look any different? The answer right now depends on where you live. “So far, 25+ states have taken advantage of the ruling, with the rest likely to follow by 2019,” says lawyer Eric Citron, who was involved in the Supreme Court case.
Have you personally noticed any price hikes while shopping online?
Is this an annoying but necessary and proper “evil” to fund state programs, or is it governmental overreach that interferes with free market principles?
I understand the concern with online shopping. With the spike in technology and online shopping, it makes sense that the State is not gaining as much revenue. Although higher prices might be necessary, I can see where the American people would be unhappy with it.
ReplyDeleteI am not an online shopper myself; however, this ruling makes sense. Shopping online has taken over and is much more accessible, leading to a greater amount of revenue possible from online shopping. This is obviously going to make the people unhappy because they are spending more money, but to the states it is very beneficial
ReplyDeleteMy family uses online shopping very frequently. It has kind of taken over and become the outlet that many people use instead of going into stores to buy merchandise, which is why I can understand that the State may not be making as much money. The higher prices are probably necessary, but it does cause unhappiness among the American people because no one really wants to pay very much money for anything.
ReplyDeleteMy family for sure uses online shopping more than anything. I have noticed that prices have risen but also the price of shipping. The prices rising may be necessary but I am not happy about it.
ReplyDeleteMy family uses online shopping very frequently, especially recently with the upcoming holidays. I have noticed an increase in price and shipping as of late. The raising prices may be necessary, but many citizens are unhappy about it including myself. This could cause people to use online shopping less and sacrifice the convenient aspect of it as the prices gets higher and higher.
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