Only if the small business is selling their product out of state without charging taxes. A lot of the reason Amazon exploded was because of the no tax advantage. Who would buy a product for close to the same price if one had added taxes and the other one didn’t?
A big built-in advantage to online retailers over local small businesses. All small business were charging taxes in their state. And actually, any business that bought a product out of state were legally bound to pay sales taxes on that item whether they were charged or not. Individuals are responsible too, they just never reported the purchase on their taxes.
The biggest disadvantage to small business is figuring out what to charge with all the taxing authorities scattered throughout the nation. Someone will come up with a web solution or business solution to solve this problem, now that there is a need. Might be a good business to start.
Online businesses will just relocate to a state with no sales tax.
A lot of people don't know that the Zip + 4 identifies your address, just code the tax according to zip + 4. Simple for bigger companies with elaborate computer systems.
I rarely go into town any more so we get plenty of stuff from Amazon and eBay, they never miss a beat on items, deliveries or prices. They both offer easy one click return prepaid, try that at your local store. Besides they have items our local stores don't know exist, of corse neither did I until I saw them on YouTube. 😀
To be honest you have to be selective on eBay.
The businesses already in a position to do this are the Merchant Banks, i.e., card paument processors. They could add the process to the existing checkout/payment process and charge even bigger fees for the service.
“Someone will come up with a web solution or business solution to solve this problem, now that there is a need. Might be a good business to start.”
So now your profit will be sliced even further, to pay for services made necessary because of government mandate. Like income tax preparers, tax attorneys, environmental consultants, diversity departments, etc. etc.