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I was wondering why my Etsy stock crashed this morning. Amazon too. If brick and mortar stores think they are losing to Amazon because of sales tax then lol. Don't think so.
Chalk up another victory for brick-and-mortar retailers.
The industry is on a winning streak after the U.S. Supreme Court ruled that states can collect sales tax on internet purchases, overturning a 1992 decision that traditional retailers said put them at a disadvantage with online competitors. This follows last year’s string of successes, when retailers helped to kill a levy on imported goods and saw their federal taxes slashed with a national overhaul.
Now, the retail survivors have one fewer excuse to blame for their woes.
“They have, in some ways, been hiding behind excuses like a tax differential,” said Edward Yruma, an analyst for KeyBanc Capital Markets. Their complaints have resonated less in recent years as shoppers’ migration online has been more rooted in convenience than price, he said.
“What’s driving the success of online players is this is how the consumer wants to shop today,” Yruma said. “It’s that simple.”
Shares of Wayfair Inc. plunged as much as 9.5 percent to $105.11 after the ruling was announced. Amazon.com Inc. dropped as much as 1.9 percent to $1,717.56.
https://www.bloomberg.com/news/arti...e-fewer-excuse-as-states-can-tax-online-sales
Chalk up another victory for brick-and-mortar retailers.
The industry is on a winning streak after the U.S. Supreme Court ruled that states can collect sales tax on internet purchases, overturning a 1992 decision that traditional retailers said put them at a disadvantage with online competitors. This follows last year’s string of successes, when retailers helped to kill a levy on imported goods and saw their federal taxes slashed with a national overhaul.
Now, the retail survivors have one fewer excuse to blame for their woes.
“They have, in some ways, been hiding behind excuses like a tax differential,” said Edward Yruma, an analyst for KeyBanc Capital Markets. Their complaints have resonated less in recent years as shoppers’ migration online has been more rooted in convenience than price, he said.
“What’s driving the success of online players is this is how the consumer wants to shop today,” Yruma said. “It’s that simple.”
Shares of Wayfair Inc. plunged as much as 9.5 percent to $105.11 after the ruling was announced. Amazon.com Inc. dropped as much as 1.9 percent to $1,717.56.
https://www.bloomberg.com/news/arti...e-fewer-excuse-as-states-can-tax-online-sales
