The GOP’s Internet Ta

WSJ Editorial. Excerpts:

"The Supreme Court’s 1992 Quill decision forbids state and local governments from requiring businesses without a “physical nexus”—that is, property or employees—to collect sales tax."

"online purchases make up less than 10% of all retail sales, and only a sliver is untaxed. Seventeen of the 18 largest retailers on the web by 2016 had already begun collecting sales taxes on all of their customers’ purchases."

"Big retailers like Amazon and Walmart have the resources to comply with disparate tax rules across thousands of jurisdictions. Small businesses don’t."

"sales tax revenues have been increasing steadily in states with healthy economies. Over the past five years, Florida’s sales tax revenues have grown 27%. South Dakota’s are up by nearly 30% since 2013."

"As for brick-and-mortar stores, most nowadays sell over the web too. Those that are struggling—e.g., Sears and Toys “R” Us—are overleveraged and didn’t adapt fast enough to changes in consumer behavior or tastes. People who shop online generally do so for the convenience rather than incremental tax savings, which can be negated by shipping costs."

"Twenty or so states have adopted “click-through” taxes to hit remote retailers that have contracts with local businesses."

"the Court could divine a new standard from whole cloth that could create confusion. Worse, the Court could enable broader taxation and regulation of out-of-state businesses. This is what many states want to happen. The Justice Department has argued for a “virtual” presence standard that would make a hash out of the Commerce Clause"