Besides, Adam Smith warned us more than two centuries ago of the dangers of government picking winners and losers. No serious economist would say so. If new e-taxes were added to current taxes, it might be. But if states lowered their tax rates to reflect a broader tax base, there would be no change in prices. Remember this argument is about collecting taxes, not paying them.
States have the right to require residents to pay taxes, whether they purchase in stores or online.
And each state that imposes a sales tax does just that. As a result, we're arguing about who collects the tax, not who owes it. The Supreme Court has said a state can't require merchants to collect taxes unless those retailers have a physical presence, such as a store or warehouse, in that state. But in a landmark 1992 case, the high court suggested if state sales taxes could be simplified so collecting was less of a burden to retailers, states could require all sellers to do so. This is more than a musty argument before a bunch of folks in black robes.