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" ... The income tax, by contrast, was better suited to the task of compensatory taxation, at least in administrative terms. But it came saddled with political problems. In the early 1930s, it was paid almost exclusively by the rich, which meant that expansionary tax cuts would “serve largely to pour public funds into private hoards” — an unappealing prospect for many economists and more than a few politicians. ... "
" ... There are three kinds of damages that Gibson’s can receive. The first kind is economic damages. That means loss of profits and various out of pocket costs. The second kind is called non-economic damages. That means things like emotional pain caused by the protests. Both of these kinds of damages are referred to as compensatory damages because they are meant to compensate the plaintiffs for bad things that happened to them. The third kind of damages is punitive damages, which are meant to punish the defendant rather than compensate the plaintiff. Thirty-three million dollars of the award to Gibson’s is punitive damages." ... "
" ... The U.S. Supreme Court disagreed. For a tax to be compensatory “the burdens imposed on intrastate and interstate commerce must be equal,” as this requirement of equality has been the “common thread running through [our] cases upholding compensatory taxes.” In this case, whether the use tax is equal or lower than the sales tax depends entirely on the local jurisdiction where the purchaser lives. In jurisdictions where the use tax exceeds the sales tax, goods purchased from out-of-state vendors are subject to a higher tax than those purchased locally. This result contravenes the Court’s “strict rule of equality.” ... "