This can't generate remotely enough revenue to offset the compliance cost to the business sector.
This is nothing more than a Federal jobs program at the expense of the private sector.
This is nothing more than a Federal jobs program at the expense of the private sector.
And that happens what, 8% of the time? Most online services are evading sales tax.
NYC has a weird list of services. http://www.nyc.gov/html/dof/html/business/business_tax_nys_s... The Texas list is more comprehensive, and includes web site creation http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html
This is also an option that would be useful in creating a VAT, if the government has access to all of these transactions. Sadly, the states already tax most of this money and it would look bad to have Feds move in there. However, the gap in service taxes would appear to be an opportunity, especially in B2B taxes which would be invisible to most people.
More likely it was an attempt to close a perceived tax loophole without understanding of the cost of compliance. I have no doubt it will get fixed before it actually goes into effect.