The US Supreme Court Rules in Favor of an Online Sales Tax

Earlier today, the US Supreme Court narrowly ruled in favor of allowing states to collect taxes from online sellers, even if the seller may not be physically located within their jurisdiction. Up til now, a seller was required to collect taxes only from customers purchasing product that were located within the same state as their business. Essentially, it is now up to Congress to determine how the ruling will be handled, since there are more than 12,000 local tax jurisdictions, making the task of collecting taxes onerous at best. Moreover, many smaller online resellers may not have the resources to handle the new tax impositions, which could require loads of paperwork to complete and an inordinate amount of time to fully address. A simple solution would be to impose a flat tax across the entire union, perhaps somewhere in the neighborhood of 4%, which might be low enough to dissuade customers from shopping elsewhere. For more information on the ruling and what it could mean visit USA Today.

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