I found a great article explaining all this in today's Forbes magazine site;
http://blogs.forbes.com/robertwood/2...ine-sales-tax/
How long will Americans put up with over taxation? Amazon isn't being taxed, we are. Amazon does not pay taxes, we do. Amazon will simply collect them from us and pass them on to the states. California, New York, and the hand full of other states that unconstitutionally collect taxes on interstate commerce should look more at cutting spending than new ways of stealing money from their constituencies.