The US Supreme Court has ruled that internet retail sellers may not be required to collect state sales taxes. This is hardly equal protection under the law, giving an advantage to out-of-state retailers. The following consequences are pointed out by http://www.newrules.com
It subsidizes the growth of distant companies, which contribute little to a community's civic and economic vitality, by giving them a 6 to 8 percent price advantage over local stores.
It undermines state and local governments by reducing tax revenue for schools, police, and other services, a revenue loss that will continue to grow as internet sales continue to displace in-store sales.
It makes a regressive tax more regressive (only those with Internet access and credit cards are able to take advantage of the tax break).