Will an Internet Sales Tax Really Level the Playing Field?

So what's the big deal with an Internet sales tax?

A new survey by Wells Fargo analyst Matt Nemer showed that consumers in Texas (where Amazon Laws are in place),  essentially haven’t changed their buying habits since the online sales tax went into effect in July.

Why?  Because most people didn't notice (and didn't care) that they were being "charged" tax.

So many stories have been written and told that state that Amazon's competitive advantage comes from the "sales tax discount".  That's not entirely true.  Amazon's strength comes from operations, innovation and marketing that drives selection and satisfaction.  Every internet retailer has that advantage over a local competitor just as a local competitor offers convenience and immediacy.

Let me illustrate Amazon's competitive advantage with a real world example from my house....My son plays soccer.  Like any good dad, I bribed him with a new Lego set if he scored a goal.  Of course this worked last season as he did nothing but stand around his first three games and then out of nowhere scored 2 goals the game after I made him the same promise for a Lego set if he scored.  He went on to score three additional goals the remainder of the 6-game season.  (He only received a Lego set for his first goal but maybe he learned what it was like to score and to feel proud of his accomplishments.)  So this past Saturday, with a Lego set on the line, guess who scored.  Yep!  So as soon as the game was over, he said, “Dad, can we go get the Lego set now?”  I wasn’t about to go to a retailer looking for a Lego set especially since the Georgia – Tennessee game was minutes from kick-off.  (Go Dawgs!)
 
So when we got home I set him up on my computer, opened Amazon, and away he went.  Thomas spent the next 30 minutes deciding what set he wanted.  He eventually landed on a Star Wars set that cost $76 on Amazon.  Of course, he wanted the set NOW so later that evening when we were out for dinner I took him to a couple of different stores to see if we could buy it NOW.  The least expensive option I found was at a national retailer for $109.  I wasn’t about to spend an extra $33 so he could have it NOW.  So as soon as we got home, I ordered it through Amazon.  With patience, we could have received the set with no shipping charges in 3-5 days.  But seeing that I already saved $33 I upgraded and he will get it in 2 days.
 
Amazon wins by virtue of having exceptional availability and competitive (if not cheap) pricing.  Pair this with their plan to have same day delivery through their extensive warehouse build out strategy and why would anyone leave their computer to shop?