When I lived in Wyoming, a free Internet leveled the playing field. Tools, materials, books, etc. which were not available locally were now only a day away. It beats driving to Fort Collins for supplies, in which case Colorado reaps the sales tax, not to mention fuel and time lost. Local Wyoming contractors can compete with big multistate operations at the same level.
South Dakota is similar. The commercial and cultural gains offset the sales tax loss. South Dakotans can also participate as sellers as well as buyers. Lower taxes boost economic output. And like they say, a rising tide lifts all boats.
Another possibly in lieu of a sales tax, would be a delivery tax, where each package delivered by FedEx, UPS, etc would have a dime tax added to it. It essence it would be a flat rate sales tax. Of course the danger is that dime will creep up to a dollar. But at least here, the burden is removed from the seller. And if such a tax were to vary state to state, the delivery companies already have the apparatus in place in all 50 states to handle it.
It's really a complex topic, not well served by my off the cuff remarks.
Of course the danger is that dime will creep up to a dollar.<<<
I rest my case your Honor....