"Isolated changes in the sales and use tax system to deal with e-commerce retail
sales will not be sufficient to reduce the unacceptably high current costs of
collecting sales taxes," the report stated. "What is needed is a fundamental
restructuring of sales and use taxes to simplify the system, reduce compliance costs on
retailers and consumers, and prepare the sales tax for the more competitive,
integrative national consumer economy in the 21st century."
State governments are on the case.In April, several states joined together to form
the Streamlined Sales Tax Project, whose mission is to overhaul the existing tax
system "to better accommodate interstate commerce, especially the changes presented by
the growth of electronic commerce...(and to) develop a substantially simplified sales
and use tax system."The group is currently holding open meetings to discuss the issue --
the next one is scheduled for July 13-14 in Chicago.