Supreme Court Rules that States Can Tax Internet Sales

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The U.S. Supreme Court ruled in a 5-4 decision last week that state governments are constitutionally allowed to tax internet sales, even if the business has no property or employees in the state..

The decision, which overturns prior rulings that requires a company to have a physical presence in the state before being subjected to taxes, paves the way for all 50 states to implement new taxes on goods and services sold on the internet.

As of right now, 31 states already have laws on the books that impose taxes on digital companies.

Surprisingly, the 5-4 decision was not split on partisan lines, as conservative judges Clarence Thomas, Anthony Kennedy, and Samuel Alito were joined by the liberal-leaning pair of Ruth Bader Ginsberg and Neil Gorsuch. The dissenters were John Roberts, Stephen Breyer, Sonia Sotomayor, and Elena Kagan.

Read the full story here.

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