Federal lawmakers are likely to renew it, and they are unlikely to address the problem of sales taxes. States can't collect sales taxes from most purchases made online. The U.S. Supreme Court has ruled that unless an Internet business has a physical presence in a state, that state cannot force the Internet retailer to collect sales taxes. That situation causes two problems. The first is the impact on state revenues.
States lose money when something is bought online instead of in a traditional store.
That money adds up. The second problem is even worse. The current system is inequitable. It benefits Internet businesses and hurts traditional retailers, who are forced to charge sales taxes for their products. By not allowing purchases online and at physical stores to be taxed at the same rate, the government is subsidizing online businesses on the backs of their competition.