Stephen P. Kranz reports:
Record-breaking budget shortfalls have caused states to search for new revenue using tools that arguably are unconstitutional and, at a minimum, violate the consumer privacy that online shoppers have come to expect. A new twist to increasing taxes is an effort — adopted by Colorado and under consideration in California and Tennessee — to force online retailers to reveal their customers and their customers’ purchases. The Colorado law will be challenged as unconstitutional. Meantime, Colorado consumers should be concerned that their state government is busy collecting data about their purchases that will be used to send them a tax bill.
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