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The total end price, including tax, affects buyer choices. Amazon can charge 5%-10% higher prices where the buyer isn't going to pay sales tax while keeping the same sales volume. That 5%-10% of sales drops straight to Amazon's bottom line, and is a huge number, a huge competitive advantage. If I were Amazon, I'd try very hard to keep that advantage too.
The OP puts the question by tying together legality and ethics. To me they are not synonymous. I find it helpful to treat the two separately.
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