Computers in Commerce class

Section 8.4 examines various governance issues raised by e-commerce. During the early years of e-commerce, it was customary to think about the Internet as far too powerful, yet amorphous, for any government to control. We now know that the Internetor at least the key players such as ISPs, e-commerce sites, and telecommunication carrierscan be controlled just as in other forms of media. One of the more interesting governance issues in the United States is taxation of online purchases. States and localities have been pushing hard for a slice of the e-commerce business pie and the Supreme Court ruled in the South Dakota v. Wayfair case that states could indeed collect sales taxes on online sales even if the company does not have a physical location within the state. The updated Insight on Business case, Internet Sales Tax Battle, takes a closer look at this issue.

Read the case on page 568-9 in the textbook and answer these questions.

1. Given the nature of the Internet, should sales tax be based on the location of the consumer rather than the seller?

2. What are the different approaches Amazon has taken with respect to sales taxes?

3. (How) Are bricks-and-clicks retailers disadvantaged by local sales tax laws?

4. Do you agree with the decision in the South Dakota v. Wayfair case? 5. Find a more recent article (from 2022) and give me an update on the sales tax issue. You can choose a local, regional, national, or international (VAT) concern. Be sure to note your source.