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That the Constitution grants Congress a power (e.g., taxation) does not mean the states are forbidden from exercising similar power (see Amendment 10). Absent
by ataggart 16y ago
That the Constitution grants Congress a power (e.g., taxation) does not mean the states are forbidden from exercising similar power (see Amendment 10). Absent a Federal law prohibiting such taxes, the states would be acting within their sovereign power. Some even argue that eliminating such state-erected barriers to trade was the purpose of the Commerce Clause.
Of course modern legal thought would approach this issue by reasoning that interstate commerce can be reached by the states if it exerts a substantial economic effect on intrastate commerce.
- URSpider94 16y agoYou're right about states not being prohibited from enacting laws governing interstate commerce, I think the clearer argument is one of jurisdiction. States have no right to compel a company that is not doing business within their borders to collect sales tax. States can and do collect tax on interstate purchases, they just do it by compelling the individual taxpayer to report and pay tax on those transactions. The problem is, without any way of auditing those transactions, there's basically no way to enforce this rule.