The E-Commerce Taxation Issue

E-commerce refers to the buying and selling of products via the internet. You can buy something online that comes from across the country. Since the states collect sales tax, the states can't collect sales tax on something you purchased online that is coming from a different state. This issue causes problems for the stores on the street and for the states. Local stores suffer because more and more people use online shopping since it is both faster and there is not a sales tax. This has created a large blow to state tax revenues.
Solutions that are proposed in order to fix this problem require the altering of tax policies and models. The issue with this solution is that the tax policies that already exist for each state are complicated enough and to alter them for the internet would only multiply the complexity. This is a difficult issue to resolve because the tax laws were not written with the internet in mind.

Here is a video explaining the evolution of e-commerce.