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"If Amazon creates a store in my living room through the magic of the internet"

Why should that count as "creating a store", when taking telephone orders or sending out mail-order catalogs doesn't?

I suppose the argument is that taking phone or postal orders should count, but never has, because it wasn't worth it to try to collect those taxes.

There have, in fact, been attempts to collect similar taxes in the past. They were always shot down by the courts.