and there is the argument about where the sale is taking place.
is it taking place in the state where the company is located, where the customer is physically located or where the server that hosts the site is physically located?
it makes the most sense to me to have that be where the business is located. my business is in Oregon. We have no sales tax. Customers come to my store and dont get charged a sales tax. just as if they came to my physical store in a local mall.
If we change that and say the transaction takes place where the customer is physically then I, the small business owner with very little margin and nearly 0 profit, would have to know the tax law in every state AND country( and perhaps provinces or states in those) my customer's are from. that's too costly a burden. it would kill small business because only large businesses would be able to afford to keep track of it all.
if you want to change it to where the servers are located I will set up a server farm tomorrow and business's will flock to it because there is no sales tax here. Oregon will benefit from the increased revenue of my profit making
and states with sales taxes will lose revenue. that would be ok with me