State and local governments also conspire to fix tax prices at the highest levels possible, but are often foiled by federalism. Citizens who are unhappy with the high taxes of one jurisdiction can shop in another jurisdiction, if possible, or “vote with their feet” and move there. A case in point is how every state government in America has been salivating over the prospect of taxing internet sales from such companies as Amazon.com that do not have a physical presence in their state. The U.S. Supreme Court ruled such taxes to be unconstitutional in 1992 but Congress is attempting to override that decision with the “Marketplace Fairness Act.” Whenever Congress starts talking about “marketplace fairness” it’s time to hold on to your wallet.
via The Sales Tax Price-Fixing Conspiracy Act of 2013 by Thomas DiLorenzo.