Huh? Because if my NJ company sells to someone in NJ that person has to pay sales tax so he doesn't buy from me and buys from FL where he pays no sales tax. Don't you see how that affects the local economy and the owner of the business? It also hurts the state (loss of revenue).If my NJ company sells to someone in FL, FL buyer pays no sales tax. If a FL business sells to someone in NJ, the NJ buyer pays no sales tax. Both small businesses benefit. Why would you limit competition just to state lines? Why not just encourage commerce to stay within one town?
AFAIAC there should be no sales tax at all but since there is when you shop locally there should be for everyone. The "local B&M business" gets hurt from all sides. You look at this only from an internet sales or mail order position and not from that of a person who owns a B&M business in a state.
The proof to me was the fact I sold close to 2000 individual items last year on eBay, all identical, all for the same price to people all over the country. Less than 10 were purchased from NJ where they had to pay me sales tax.