Go60Guy - 1:03 pm on Mar 23, 2009 (gmt 0)

In keeping with the possibility of some form of preemptive Federal legislation, I think a good case could be made that the proposed taxing scheme imposes an undue burden on interstate commerce in contravention of the Commerce clause in the U.S. Constitution. Actually, there's some U.S. Supreme Court case law to support such an argument which says that "to impose a collection obligation on a remote seller would impose a crushing burden that would severely restrict interstate commerce".

Certainly, the likes of Google and Yahoo would have ample resources to mount such a challenge should the proposed legislation be enacted.