Be careful with that overused and, often, progressive speak buzzword; “fair”. An internet sales tax is, especially, hard on a sb who hosts there own site and the software for the +10k tax possibilities is non-existent. It usually takes department strength of a mid-size or higher co. to manage that tax law environment.
Furthermore, an internet sales tax is, arguably, unconstitutional. “Why should out-of-staters pay taxes to a government when they consume none of the services or wealth transfers provided by that government? Why should they pay taxes to political entities for whom they are not eligible to vote and who are completely unaccountable to them? That is taxation without representation.” Furthermore, the imposition of a tax on an out-of-state businesses is akin to imposing duties on imports and exports between the States which is an attack on Article 1, Section 9, para. 5.
You have a point regarding small, independent on-line retailers. Until there’s an off-the-shelf software solution, the administrative burden would be onerous.
However, your second paragraph completely misses the mark. The taxes collected from “out-of-staters” would be remitted to their respective states.