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Dr. Agrawal Studies Taxation in an Internet Age

Many Americans these days do their shopping online-- for gifts, services, and even their groceries. However, unless the vendor has a physical location in the shopper's state, the purchaser likely isn't paying state and local sales taxes. This is because the Supreme Court has ruled that only firms with a physical presence in a state must remit state and local sales taxes. Today, as more and more consumers ​make purchases​ on​ the internet​, states are potentially missing out on an important source of revenue.

This fall, Dr. Agrawal and his co-author, Dr. Fox, discuss the challenges and possible policy solutions -- including potential federal legislation requiring all large online vendors to remit taxes such as the Marketplace Fairness Act -- in their work "Taxes in an e-commerce generation," published in International Tax and Public Finance. Their article provides a global perspective on an extremely salient topic in tax policy!