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Buying locally also has other advantages such as personalized customer service and ease of returning defective products.

Also, requiring online retailers to collect state sales director taxes would require each retailer to file 50 individual state sales tax returns – a nightmare for small online retailers.

And what about overseas online retailers such as those operating out of China? They don’t currently collect any sales taxes and I doubt if any US or state sales tax laws could be easily enforced against them.

So e-commerce should remain FREE of taxes unless the on-line retailer maintains a physical presence (like a retail store or warehouse) in a particular state.

California legislators and big box retailers should quit their grumbling. Walmart and the other big box retailers are making more money than ever and don’t need whatever income they may gain from online retailers losing their sales tax advantage. And states like California need to find other ways to cut their budgets (like cuts to their enormous state bureaucracies) rather than attacking e-commerce.

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