The best traditional HN bad car analogy I can provide is Illinois State DOR is angry the new car factories are relocated in the rural south where the property taxes are low and what tax they do pay goes to the locals and not Illinois DOR, and they're selling those "foreign" cars in Illinois, so Illinois is going to add a special registration tax for cars registered but not manufactured in Illinois.
This is kinda a bad example because Illinois still has a handful of plants left, although they're doing everything they can to push them out of the state as fast as possible, I selected them more as an example of a very high tax state than as a non-mfgr state.
Nah, I would use the ZEV system. Where if you don't produce it how we like it you pay a penalty; a tax. (Zero Emissions Vehicle) credits.
The no physical existence loop hole is one worth closing, if you sell goods or services it should be taxed within the authority the sale occurs. That is common sense. However the second issue, what is digital and what isn't and how it can be taxed outside of the same point is a bit worrying, it basically sounds like, if we don't think you pay enough even following the rules you will pay this too.
just watch for the exceptions to pile on because you can guarantee members of the G20 will put them in there, similar to how states and cities whack large chains by looking at their full sales corporate wide instead of local sales.
It would also never survive Constitutional scrutiny, as it’s a blatant violation of the Commerce Clause. States can’t impose import duties, however disguised.
This is kinda a bad example because Illinois still has a handful of plants left, although they're doing everything they can to push them out of the state as fast as possible, I selected them more as an example of a very high tax state than as a non-mfgr state.