You miss the point. Tax competition is a theme of Federalism. It maintains liberty.
By recognizing that you need a physical presence in a state/locality to be taxed by it limits the power/authority to tax. Without that limitation, which has been exceeded in most areas of our lives, what cannot be taxed?
Brick and mortars are actually protected by no Internet taxes. It forms a sea-anchor against additional tax increases. American businesses move overseas not for the low labor (productivity is critical), but to escape taxation, excessive regulation, and onerous litigation.
It seems counterintuitive, but consider that the brick and mortars are fully at the mercy of local governments. They daren’t resist.
“Brick and mortars are actually protected by no Internet taxes.”
Good points. If tax competition keeps taxes down; then that’s the best solution. Meanwhile though, Amazon and the like are getting an unfair advantage from the taxman.