Marshall - 2:25 pm on Dec 7, 2011 (gmt 0)
Misner is correct that collecting it should not be difficult. However, I see a huge expense involving distribution, especially if you sell in all 50 states, unless some electronic solution is implemented.
The other issue is that states with varying rates should be forced to pick one. If they can set rates for separate counties, or parishes depending where you are, they could consider the internet (internet sales) as it's own county, so to speak, for the purpose of collecting and setting tax rates.
I have to disagree though that internet companies have an advantage by not paying taxes. They do, after all, have to pay shipping. Their advantage lies in the fact they don't need a fancy brick-and-mortar retail location (stand alone or in a mall) and thus pay less in physical costs.