State of Wayfair: Lack of Enforcement Leaves Money on the Table

Feb. 11, 2020, 8:38 PM

The stampede of state laws imposing tax collection duties on remote sellers and marketplaces is bringing a flood of new revenue into coffers, but some economists believe the authorities can do much more.

Following the U.S. Supreme Court’s landmark ruling in South Dakota v. Wayfair the states have quickly enacted laws permitting them to enhance sales and use tax compliance from e-commerce transactions. But Charles W. de Seve, an economist, said states are still in the early stages of closing the multibillion-dollar tax gap—the divide between taxes owed to a state and the amount actually collected and remitted by sellers ...

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