My brother is so worked up about the latest bit of Bloomberg tyranny that I thought I'd drop one more post out here to help get his mind off it.
The movement to let states tax the internet is apparently gaining steam. It's supporters include such conservative stalwarts as Chris Christie, Mitch Daniels and a number of other Republican governors. A full list can be seen here. So if this happens, I won't protest. My brother and I (along with a few lucky early stage investors) will simply go into the drop shipping business.
You register your address with an online company based only in a no sales tax state. Then you have all your online packages shipped to one of our addresses assigned to you. On it's receipt we re-ship it to you. You have to pay increased shipping costs but for any item where the price tag is high it pays off quickly.
Since the purchase itself doesn't include shipping to a tax state, the seller doesn't have to collect the tax. And since we are only selling you the shipping service, that's all we have to charge a tax on. The savings in many cases will be significant - and we'll have online calculators based on sales prices, package size, and destination to help you calculate if it works for you to use us.
This can even be done with most online book, or software purchases, although it might prove a bit more complicated depending on the licensing sche3me in use. Remember, high tax rates increase the incentive to avoid them.
And if we decide that we're too busy doing what we're doing, I'm sure MANY other people will have similar ideas. Look for them as soon as the tax is approved.