Supreme Court's E-Commerce Ruling Could Help Amazon
Shares of online retailers Wayfair, Overstock, eBay, and Etsy all tumbled Thursday after a landmark decision by the Supreme Court took away one of the key advantages some e-commerce companies had over traditional retailers.
And one of the biggest winners from that ruling, maybe ironically, could be Amazon, said Tom Forte, managing director at research firm D.A. Davidson.
"This now gives Amazon\[, which already collects sales tax,\] insurance against there not being a Jet.com-like start-up using the sales tax advantage against them," he said.
Up until the high court's ruling Thursday, retailers were not required to collect sales tax from consumers unless they had a physical presence in the shopper's state. The loophole sprang out of a 1992 ruling, well before the rise of digital commerce, which specifically applied to mail-order retailers.
That decision did allow for the then-nascent e-commerce industry to grow in the early days of the internet, but Justice Anthony Kennedy wrote in the majority opinion that it was now outdated.
Subjecting all online retailers to the same rules as brick-and-mortar, though, may not ultimately help the mom-and-pop shops that have struggled most in the shift to online, Forte said, "unless they're a mom-and-pop focused on big ticket items."
"If you could buy a computer at Circuit City for $1,000 and on Amazon for $1,000 and not pay sales tax, it gave you an incentive to buy on Amazon."
For the full interview, [click here](https://cheddar.com/videos/supreme-court-gives-states-a-win-against-e-commerce).
Social media users take note: You won't be able to snap that fall foliage selfie at a popular Vermont spot. The town has temporarily closed the road to nonresidents due to overcrowding and “poorly behaved tourists.”
A pair of front-row balcony tickets to Ford’s Theatre on April 14, 1865 — the night President Abraham Lincoln was assassinated by John Wilkes Booth — sold at auction for $262,500, according to a Boston-based auction house.
President Joe Biden grabbed a bullhorn on the picket line Tuesday and urged striking auto workers to “stick with it” in an unparalleled show of support for organized labor by a modern president.
The Supreme Court on Tuesday allowed the drawing of a new Alabama congressional map with greater representation for Black voters to proceed. The new districts also could help Democrats trying to flip control of the House of Representatives.
With a government shutdown five days away, Congress is moving into crisis mode as Speaker Kevin McCarthy faces an insurgency from hard-right Republicans eager to slash spending even if it means curtailing federal services for millions of Americans.
