The tax goblins are at it again. This time Dick Durbin is in the lead.

Amazon's Love Note to Senate Backs Sales-Tax Proposal - Tricia Duryee - Commerce - AllThingsD

I could agree with a 4% or 5% national Internet sales tax that would require a single payment each month to the Federal government, who would dole it out to the states. That was the original proposal a few years ago, but this looks like it is going down the path where paperwork and taxes would have to be filed with each participating state every month. Most small businesses cannot handle that. It will take many hours to process that paperwork for 50 states each month. That alone is enough to prevent many small businesses from ever getting started, which appears to be the motivating force behind Amazon's backing of this ludicrous idea.

Look at the propaganda they are already putting out.

Marketplace Fairness Act: Supporters

What the heck does the AFL-CIO, state employees or Federation of Teachers have to do with sales tax? Of course large online stores support this bill. It prevents small businesses from operating efficiently and keeps the competition down.

The part that isn't mentioned it that when a state has the right to tax a purchase, they also have the right to audit a business' books. When an auditor knocks on you door, it cripples the business for several days.

The point that is always avoided is that not charging sales tax does not give online stores and unfair advantage. They still have to charge or absorb the cost of shipping, which in many cases exceeds the typical sales tax.

This is another insane idea that will stifle small business. If you sell products online in the USA, you will need to keep on top of this. Even downloadable products are taxable in most states.