US E-commerce Sales Tax

That's one way to do it, but it's extremely challenging. The sales tax can depend on where the buyer is located, where the buyer is from, where the seller is located, and where the seller is from. There are ~1000 jurisdictions for each of those four choices, so that makes for ~1000^4 different cases to handle. You'd also have to register as a merchant in each juridiction, and know the rules for when you have to start remitting sales tax to that jurisdiction. There ar

In the real world they charge sales tax.

Sales tax is by state. Supporting VAT by state for ecommerce would be a nightmare.

do you also not believe in merchants collecting Sales Tax?

In that case, it looks like the US sales tax laws are the problem.

It's a feature not a bug that states can charge different sales tax rates..

This would mean sales tax in all 50 states for amazon purchases.

You've got too many pronouns without antecedents in your post. The merchants are not liable to collect sales tax, but customers may be liable to pay it under their state law. This is called a use tax: http://en.wikipedia.org/wiki/Use_taxExact details vary from jurisdiction to jurisdiction... and in fact that's the problem this bill is intended to address. A federal framework is necessary to avoid the problem of being required t

Not likely; sales tax is extremely complicated in the US. There are 13,000 sales tax jurisdictions, and many of them have different and incompatible rules for things like sales tax nexus.

US sales tax is not relevant if you're not in the US.