The audacity of government tax and spenders is illustrated by the outrageous claim made by the City of New York that a New Mexico based internet company violated federal laws intended for organized crime when the company refused to give purchaser information to NY tax collectors. Consider the chilling affect when an online business sells to customers in the ordinary course of business and NY alleges it engaged in racketeering. The case went all the way to the U.S. Supreme Court.
Wall St. Journal: “The Supreme Court ruled Monday that New York City couldn’t use federal racketeering laws to sue out-of-state Internet tobacco retailers that don’t file reports on city residents who buy cigarettes online. The city wants the reports so it can collect cigarette taxes directly from residents who purchased tobacco products online. The retailers aren’t required to collect the taxes. The case before the high court centered on New York’s allegations that New Mexico-based online retailer Hemi Group committed racketeering offenses of mail and wire fraud by allegedly failing to submit reports on its New York City customers to state tobacco administrators.