This actually raises an interesting question. What if states got rid of their sales taxes altogether, and found a different way to raise revenue?
The first big advantage would be a boom in brick and mortar small business in the state. They would have a level playing field with the Internet companies, and the advantage of location. This advantage is so great, they could use Internet retailers as wholesalers. Likewise they would be more competitive against franchises.
And because small business hires more people than any other kind of business, unemployment in the state would drop, saving the state money paid in benefits.
Small business also prefers locally produced supplies and commodities, so it would boost farming and other production in the state.
Ah, well, there's the rub, isn't it? Raise revenue from what? Income tax? Property tax?
"What if states got rid of their sales taxes"
What revenue does a state really need to raise? First step is user fees. That would keep government bloat down.
