If individual states start enacting these laws, it just seems like it would get incredibly complicated for online merchants to do business.
I say figure out a better way to generate a revenue. At the very least have a uniform national system that everyone can agree upon so that companies can apply one standard to all of their sales.
I already use bit torrent and other p2p means to get all my music and other digital downloads. They can't tax these types of downloads, and if such a tax does come to pass it will turn even MORE people to P2P as a means of getting the files they want at no cost.
Here is what I do not understand. I buy an album on iTunes for 9.99 - I am not charged tax. I just bought the MLB At Bat App for my iPhone it was also 9.99, I was charged tax. I don't really care either way since my purchases like that are minimal at best, but I am curious.
@David - Software is always taxable - even if the site doesn't collect it (use tax), it is considered a product at all times (ok there are exceptions, but generally).
Music downloads are considered 'service' from my understanding. Physicial album / CD is a product. That is why they, whoever they are, talk about 'closing' a loop hole.