In June 2018, the U.S. Supreme Court ruled that states can force large online retailers to...

In June 2018, the U.S. Supreme Court ruled that states can force large online retailers to collect sales tax from customers, even if the retailer does not have a physical presence in that state. Do you think sales tax should be collected on Internet purchases? Why or why not? What are the positive and negative implications of collecting sales tax on Internet purchases?

Expert Solution

Although this forms part of the subjective opinion but the supreme court ruling on the imposition of sales tax on internet purchases have major implications for affecting the economy and it can safely be said that sales tax should be collected on internet purchases. First of all, it seems that the local businesses finally feel balanced in the competition side now that the online stores won't be able to attract customers by their extremely attractive low prices and offers as much as they were able to do before. So it gives them hope to make sales on the non online side as well boosting the local economy.
Secondly, this may actually also affect the government revenues. We all know that online shopping has emerged a big source of business in today's times. By keeping this area tax free and losing out on revenue boosting does not seem plausible as this increase in revenue could help the present government to follow its development of improving infrastructure facilities, Research and development, health care and much more.

Positive implication of sales tax collection includes:
1) Boosting the local retail businesses and helping them become economically competitive reducing the online retailers' advantage by introducing online sales tax.
2) Collection of sales tax on such a huge and emerging area of business could really boost the government revenue and help it carry out its functions smoothly/

Negative implication includes:
1) Troublesome procedure and unclarity: As the online retailers work almost in a virtual space, it is very difficult for government to pin down on whom to impose tax as their location is not specified. Surely, it is going to be quite time consuming.
2) Against the free market spirit of US: Although this rulings may help the local businesses, but it is also going to affect the consumers on the negative side as the sales tax would increase the price of goods. Also, the imposition of sales tax, the online retailers would lose their advantage and affect their revenue which in turn could also affect the growth process in America.

Rahul Sunny answered 2 years ago

On June 23, 2014 – in its Hobby Lobby decision – the Supreme Court ruled that...

On June 23, 2014 – in its Hobby Lobby decision – the Supreme Court ruled that requiring privately-owned corporations to pay for insurance coverage for contraception under the Affordable Care Act violated a federal law protecting religious freedom. Please defend or refute the following statement: 5A. The recent US Supreme Court Hobby Lobby decision curtailing the availability of employer provided health insurance covering contraceptives – which are also prescribed for medical reasons other than preventing pregnancy – is a clear...

14 ) In U.S. Term Limits v Thornton, the Supreme Court ruled that the age, residency,...

14 ) In U.S. Term Limits v Thornton, the Supreme Court ruled that the age, residency, and citizenship requirements set forth in the Constitution were a complete statement of Congressional eligibility standards and that the only way to add any eligibility requirements would be through a constitutional amendment. True or False 15) Each state is given a number of Electoral College votes equal to its combined number of seats in the U.S. House of Representatives and the Senate. True or...

A supreme court from a certain region recently ruled that employees can be tested for drugs...

A supreme court from a certain region recently ruled that employees can be tested for drugs only if management has reasonable cause to administer the test. An article in a certain magazine focused on the misclassification rates of such drug tests. A false positive occurs when a drug test administered to a non-drug user yields a positive result. A false negative occurs when a drug test administered to a drug user yields a negative result. Complete parts a and b....

In Roper vs Simmons, the US Supreme Court ruled that juvenile defendants can no longer be...

In Roper vs Simmons, the US Supreme Court ruled that juvenile defendants can no longer be sentenced to death in a capital trial. They cited information submitted by the American Psychological Association showing that age is correlated with impulsiveness (young people are often impulsive, a factor that might lead them to commit a homicide). Imagine the Court is unsure whether to categorize 16-, 17-, 18-, or 19-year-olds as adults or as juveniles. However, they do have an impulsiveness threshold. If...

Which of these was likely a problem with Obamacare? a. The Supreme Court ruled the individual...

Which of these was likely a problem with Obamacare? a. The Supreme Court ruled the individual mandate unconstitutional. b. The mandate is fairly weak, so some people will choose to not buy insurance. c. Zero states have agreed to do the Medicaid expansion. d. The law requires all employers to provide health insurance.

United States v. Bailey United States Supreme Court 444 U.S. 394 (1980)

In Brown v. Board of Education (1954), the Supreme Court ruled that racial segregation in public...

In Brown v. Board of Education (1954), the Supreme Court ruled that racial segregation in public schools violated the Equal Protection Clause of the Fourteenth Amendment because "separate is inherently unequal." Does this mean that schools should be legally required to have racially balanced student populations? In other words, should the racial composition of the school be required to match the racial composition of the surrounding area's population (i.e., if the county is 60% white, 30% Hispanic, and 10% black,...

) In 2002 the Supreme Court ruled that schools could require random drug tests of students...

) In 2002 the Supreme Court ruled that schools could require random drug tests of students participating in competitive after-school activities such as athletics. Does drug testing reduce use of illegal drugs? A study compared two similar high schools in Oregon. Wahtonka High School tested athletes at random and Warrenton High School did not. In a confidential survey, 8 of 132 athletes at Wahtonka and 29 of 111 athletes at Warrenton said they were using drugs. Regard these athletes as...

Name three Constitutional issues that The Supreme Court has ruled on in the 21st century. Choose...

Name three Constitutional issues that The Supreme Court has ruled on in the 21st century. Choose the issue that you think is most important and relevant to legal psychology.

The Supreme Court ruled that Eastman Kodak Company must stand trial in an antitrust suit that...

The Supreme Court ruled that Eastman Kodak Company must stand trial in an antitrust suit that has important implications for the ability of manufacturers to control the markets for the parts and servicing of the products they make. Independent servicing companies that sell replacement parts and service for Kodak's line of sophisticated business machines contend that Kodak was trying to force them out of business by restricting their access to replacement parts and by trying to insure that customers for...

Question