A big tax battle is erupting in California. The immediate numbers involved are not large—about $200 million—but the principle is huge, and the outcome will have an enormous impact on our economy. The fight is over applying sales taxes to products sold on the Internet If California gets away with its new unconstitutional tax, consumers nationwide could be hit for billions and the economy will be further harmed. The Supreme Court ruled in 1992—as it had before—that retailers cannot be required to collect sales tax in a state where they do not have a physical retail presence.
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