CNBC: How Amazon wins if internet sales tax goes into effect

This month, the U.S. Supreme Court will hear the case South Dakota v. Wayfair, Inc. According to CNBC, this case can affect the future of online commerce and determine if states can collect Internet sales on purchases coming from a seller that is not physically located in a customers' state. That means every franchise will be treated as a brick and mortar store and charged local fees in each state.

The implementation of this type of tax is backed by retail giants such as Target, Best Buy and Walmart because of the burden it would place on small businesses. State and local officials are also in favor of the tax because it would allow them to tax sellers in other states and encourage in-state purchases and increases state revenue.

Currently, small businesses that sell online are protected by the idea of no taxation without representation if a store does not have a physical presence in the state.

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