"A national sales tax would be the death of the tax-free internet and it would usher in state sales taxes being assessed on out of state purchases. Once the federal government established the national sales tax architecture, the states would be able to piggyback quickly."
-- So what? All we would need to do is transition to a origin-based interstate sales tax system. Economist at the ultra-conservative American Enterprise Institute (AEI) have been clamoring for this for years.
What it an "origin-based interstate sales tax system"?
Instead of basing the tax on where buyer is located, how it is now, it would be based on where the seller is! And what's the result??? Businesses flock to set up shop in whichever state has the lowest sales tax!!! That's called tax competition, my FRiend.
Thoughts???
Great points! I never considered how such a simple change could effect state sales taxes!