New Internet Tax Scheme Presents Another Method
A committee of the National Academy of Science's National Research Council  is recommending that everyone pay the same tax rate regardless of where they reside or the state in which the vendor is based. Called a 'flat tax,' the tax would be collected by the vendor.
Sounds good in theory, but a flat tax-based system probably won't work, according to Karl Frieden, a partner with Arthur Andersen , author of Cyber Taxation: The Taxation of E-commerce.
Frieden says the flatter a tax is, the more uniform the program, and as a result, the more objection there is to it by states because it speaks against the ability for each state to run its own government as it pleases.