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Amazon.com has now begun collecting sales tax on sales to residents of New York. New York is the first state to pass a law requiring retailers, even those without a physical presence in the state, to collect sales tax from residents of New York. Amazon and Overstock.com have both filed suit challenging the constitutionality of the New York statute. Amazon has only collected taxes in states where it has operations: North Dakota, Kentucky, and Kansas. Amazon.com has no physical facilities in New York. With revenue shortfalls predicted in 29 states for the year 2008, online sales revenue is an untouched pot of money that state legislators and treasurers would like to get their hands on.
What would be the argument against the constitutionality of the tax? What would be the argument up- holding its constitutionality?
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1. If you were planning to do business in a culture that was opposite from your own on the cultural dimensions of "power distance" and "individualism/ collectivism," what challenges would you expect to face? How would you prepare?
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