Republican governors, eager for new revenue to ease budget strains, are dropping their longtime opposition to imposing sales taxes on online purchases, a significant political shift that could soon bring an end to tax-free sales on the Internet.
Conservative governors, joining their Democratic counterparts, have been making deals with online retail giant Amazon.com to collect state sales taxes. The movement picked up an important ally when New Jersey Gov. Chris Christie—widely mentioned as a potential vice-presidential candidate—recently reached an agreement under which Amazon would collect sales taxes on his state's online purchases in exchange for locating distribution facilities there.
So now you will pay a tax plus shipping. That seems to me to be a potential for destruction of online business.
And it disproportionately discriminates against telephone sales orders across state lines where no taxes will be collected just as before.
But sales taxes have always been owed on all those internet purchases. It's just that people don't report them and pay the taxes to the state where they live - assuming there is a sales tax.