Question

Should States Tax E-Commerce? If yes, why? If not, why not?

Answer 1

The ecommerce tax applies to the online sales tax. Sales tax is a small percentage of an online retailer's cost of that profit.
Sales tax is a "consumption tax," which ensures customers only pay sales tax on taxable goods that they buy at retail.

Company will pay sales tax if you have a state nexus."Nexus "refers to a government-owned business link. The word simply responds to the question, "Do you do business here?"States have different ways to determine if you're doing business at their borders, that is, they have different ways of identifying nexus. It may be your physical presence in a country, or your quantity of transactions, or it may even extend to your marketing practices.

Sales tax nexus impacting companies in eCommerce: physical presence nexus. If you use "office, place of delivery, sales or demonstration space, warehouse or place of storage" in any capacity, or if you hire "a representative, agent, salesman, canvasser, or solicitor" in that State in any capacity.
The center of the economy. If you're making a certain number of transactions or selling a certain amount.
Click-through node. When you run ads or links on an in-state website that can funnel potential customers to you as well as new business. Nexus for partners. If you are associated with a state-owned business or person and from this relation sales are created.