Taxes are bad — but, just hitting local retailers with them is even worse. Why should the likes of Amazon be (in effect) subsidized, at the expense of local businesses?
Why should local businesses be punished for locating in your town?
Why should we prop up local business?? What is so special about them?
Amazon uses no local services other than maybe the road for UPS to deliver your purchase on while the local retailer uses many. A more sensible rule for purchasing items through the mail would be to charge tax based on the sales location rather than the purchase location. That way Amazon only has to worry about one tax rate rather than tens of thousands of little towns' rates. Also, states will be fighting (with tax incentives) to get business to move in. Imagine a state saying we will waive the sales tax on Amazon if they move here.
Why should internet retailers be punished by having to comply with every single state's tax laws, which is a much (MUCH!) more onerous burden? Online purchases, further, have shipping associated with them. Now, online retailers will have to know, keep up to date on, and apply at least 50 different standards?
Either way, the government subsidizes a business model.
How does one deal with offshore internet retailers?
Because unlike a brick-and-mortar store that has a physical presence in the taxing jurisdiction, Amazon doesn't require police protection, fire protection, water, sewer, sanitation, zoning, planning, or roadways or other infrastructure.