Most people don't seem to realize that the era of tax-free Internet shopping ended years ago. Even though you don't pay sales tax at the vendor, you have to show all such purchases in your annual tax return where it will be subject to California State tax AND, what they call, use tax which is collected by the Board of Equalization.
Something like this is exactly what the federal government actually should do to set a unified standard for interstate commerce on the internet.
I personally believe that states have a right to set tax rates for themselves as a means of attracting business, but when it comes to the internet, they should set some kind of flat tax on all e-commerce, nothing crazy like 10%, but perhaps 4% for the state in which the buyer resides, 1% for the state in which the company resides, and 1% for the federal gov't.
A 6% tax rate would not be egregious for the average consumer, and it would allow companies total freedom as to where to base their physical locations, as this particular tax issue would offer no competitive advantage to any particular state, although the states would be free to offer additional incentives as far as property taxes, etc, to attract a company.
One of the great strengths of this country has always been the small business owner, and the internet allowed anyone to become just that. From your home or apartment you can become rich, or just supplement your income, so I think that if this issue is dealt with on a state level, you're going to get what Amazon is doing across the country, and that's cutting affiliate programs, which are probably in a lot of cases businesses that make the difference in someone keeping their home, or paying for health insurance or education. A federal law would really open the playing field to everyone and avoid disrupting people's lives, forcing them to choose between their business or where they live.
It isn't fair that physical stores have to charge sales tax whilst online retailers don't. I mean, I'm against the entire idea of sales tax in principle, frankly; but some businesses having to charge it whilst others don't based on antiquated pre-Internet regulations isn't satisfactory either.
Be thankful you don't live in the UK, where VAT (sales tax equivilent) is 20%
If it were up to me, I'd suspend ALL sales taxes indefinitely UNTIL governments ( at least the ones that are OF the people, BY the people and FOR the people ) would live up to their damn RESPONSIBILITIES and spend what they ALREADY GET wisely.
Taxes that make sense, AREN'T used to fill holes in overspending ( read: oops, we thought the people wanted this, we just didn't CHECK with them first ).