David B. Grinberg
Thanks for the excellent and insightful comments, Peter and Mark, which are always very much appreciated. I think this is bad public policy for many reasons, including the points you make.
Another issue is that if a tax on Internet sales is enacted, then what's next? This is a slippery slope and may casue a tsunami of similar tax proposals for a range of online activity, not the least of which is web-based sales.
On another level, this may be viewed as politicians rewarding the same colossal corporations which bankroll their campaigns -- that good 'ole shell game: you (politicians) get my back and I (Corporate America) will get yours.
Let's keep the Internet free from taxes -- period!