If this passes, you will hear the thud of a million small businesses closing. Nobody wants to deal with the labyrinthine tax requirements of all the states they can ship to, where one product might be taxed at one rate and one at another, and this is WHY people buy online in the first place!
A bill expected to be introduced in the U.S. Congress as
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I don't pay sales tax on Amazon stuff. If I did, it'd kill a lot of the cost savings, and I would quit ordering from them.
Also, online mom-and-pops. There's a lot of states where things are so silly that some brands of pop-tarts are taxed as candy and some are taxed as food items. They'd have to keep track of that and charge for all states. There isn't even software to handle that, and it changes constantly.
They'll just shut down. I would.
They aren't realizing how much online sales help the economy, they just want to stick their fingers in the pie and get some. Even if it ruins the pie...
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You'll see off-the-shelf website solutions for taxation for small business, and larger companies will do it in-house. while these things need to be much, much more universally adapated, and I never like paying more taxes.. I don't think technological and software limitations are the reasons not to do it.
--Chi
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