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Supreme Court wrestles with administrative law judge case
Court Watch News |
2018/04/18 10:39
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The Supreme Court wrestled Monday with a case brought by a former financial adviser known for his "Buckets of Money" strategy who is challenging the appointment of the administrative law judge who ruled against him.
The case involves the Securities and Exchange Commission's administrative law judges, who conduct hearings on alleged securities law violations and issue initial decisions. The federal government employs administrative law judges in more than 30 agencies, however, giving the case the potential to have a broader impact.
During arguments Monday, Justice Anthony Kennedy wanted to know "what effect, if any" the case would have on administrative law judges in other agencies. Attorney Mark Perry suggested that the court's decision could impact some 150 administrative law judges in 25 agencies.
The question the justices are being asked to decide is whether the SEC's administrative law judges are SEC employees or instead "inferior officers" of the United States. The answer is important in determining who can appoint them to their positions.
The case before the Supreme Court involves former financial adviser Raymond J. Lucia, who as a radio show host, author and seminar leader promoted a retirement strategy he called "Buckets of Money." Lucia's strategy was that in retirement investors should first sell safer investments, giving riskier investments time to grow. |
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Clicking 'checkout' could cost more after Supreme Court case
Topics |
2018/04/17 05:37
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The Supreme Court is hearing a case this week that could affect how much customers pay for online purchases.
At issue is a rule saying that businesses don't have to collect state sales taxes when those businesses ship to a state where they don't have an office, warehouse or other physical presence.
Large retailers with brick-and-mortar stores have to collect sales taxes nationwide, but smaller online sellers can often avoid doing so.
Large retailers say the rule puts them at a competitive disadvantage. States say they're losing out in billions of dollars in tax revenue.
But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business. |
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Question of sales tax on online purchases goes to high court
Network News |
2018/04/17 05:37
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Online shoppers have gotten used to seeing that line on checkout screens before they click "purchase." But a case before the Supreme Court could change that.
At issue is a rule stemming from two, decades-old Supreme Court cases: If a business is shipping to a state where it doesn't have an office, warehouse or other physical presence, it doesn't have to collect the state's sales tax.
That means large retailers such as Apple, Macy's, Target and Walmart, which have brick-and-mortar stores nationwide, generally collect sales tax from customers who buy from them online. But other online sellers, from 1-800 Contacts to home goods site Wayfair, can often sidestep charging the tax.
More than 40 states are asking the Supreme Court to reconsider that rule in a case being argued Tuesday. They say they're losing out on "billions of dollars in tax revenue each year, requiring cuts to critical government programs" and that their losses compound as online shopping grows. But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
Large retailers want all businesses to "be playing by the same set of rules," said Deborah White, the president of the litigation arm of the Retail Industry Leaders Association, which represents more than 70 of America's largest retailers.
For years, the issue of whether out-of-state sellers should collect sales tax had to do mostly with one company: Amazon.com. The online giant is said to account for more than 40 percent of U.S. online retail sales. But as Amazon has grown, dotting the country with warehouses, it has had to charge sales tax in more and more places.
President Donald Trump has slammed the company, accusing it of paying "little or no taxes" to state and local governments. But since 2017, Amazon has been collecting sales tax in every state that charges it. Third-party sellers that use Amazon to sell products make their own tax collection decisions, however.
The case now before the Supreme Court could affect those third-party Amazon sellers and many other sellers that don't collect taxes in all states — sellers such as jewelry website Blue Nile, pet products site Chewy.com, clothing retailer L.L. Bean, electronics retailer Newegg and internet retailer Overstock.com. Sellers on eBay and Etsy, which provide platforms for smaller sellers, also don't collect sales tax nationwide.
States generally require consumers who weren't charged sales tax on a purchase to pay it themselves, often through self-reporting on their income tax returns. But states have found that only about 1 percent to 2 percent actually pay. |
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Clicking 'checkout' could cost more after Supreme Court case
Industry News |
2018/04/16 05:37
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The Supreme Court is hearing a case this week that could affect how much customers pay for online purchases.
At issue is a rule saying that businesses don't have to collect state sales taxes when those businesses ship to a state where they don't have an office, warehouse or other physical presence.
Large retailers with brick-and-mortar stores have to collect sales taxes nationwide, but smaller online sellers can often avoid doing so.
Large retailers say the rule puts them at a competitive disadvantage. States say they're losing out in billions of dollars in tax revenue.
But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.
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