Limitations For Imposing Income Tax On E-commerce By Out-of-state Firms

In general, Congress has vigorously exercised its power under the Commerce Clause by limiting the state and local governments’ authority to collect income tax from out-of-state firms. This article addresses the issue of taxation of out-state companies in the United States, an issue faced by e-commerce transactions and still under the Commerce Clause of the United States Constitution.

The following questions have been addressed in this article:

Would an unequal taxation at lower rate be more preferable to tax neutrality?
Why shouldn’t the Out-of-State Companies Collect Taxes?

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