“Remote sellers,” i.e. Internet-only retailers and catalogue companies are at the center of the controversy. Traditional brick-and-mortar businesses, meanwhile, are typically required to add sales tax in whatever states they have stores. But states — seeking additional revenue to balance their budgets — are  pushing legislation to require e-tailers to collect sales taxes where they have a physical presence like a warehouse, call center or their headquarters.

And it’s no wonder considering the findings of a 2009 University of Tennessee study, which estimates that state and local governments could miss out on as much as $11.4 billion to $12.65 billion in sales taxes uncollected from e-commerce sales next year.

Even retailers with a strong online presence such as Wal-Mart hope to level the playing field by imposing taxes on online-only businesses. Because of their tax loophole, e-tailers can often run bigger sales, a practice that, according to a senior official at a specialty chain, “is killing other businesses.”

However, passing this type of legislation is easier said than done.

“Interstate commerce is generally legislated by the federal government,” says Paul Hurley, CEO of Ideeli, “and the right place to legislate this issue is at the federal level and even there, it’s going to be complicated.”

Hurley’s sentiments are echoed by Overstock CEO Patrick M. Byrne in a statement published on Overstock’s website:

“It is unconstitutional for a state to pass a law making out-of-state retailers collect sales tax simply for having business relations with marketing affiliates in those states.”

But Congress has already set those wheels into motion. The Durbin bill is an initiative by Assistant U.S. Senate Majority Leader Dick Durbin (D., Ill.) that would require all retailers to collect sales taxes in the 45 states, including the District of Columbia, where they exist.

Hurley argues that these taxes could “stifle businesses that depend on technology and the Internet,” even though e-commerce growth shows no signs of slowing.  E-commerce now accounts for 9 percent of retail spending, in comparison to 0.47 percent in 1998 and a projected 11.1 percent in 2015.

With online sales projected at $197.3 billion this year and $217.5 billion next year, this issue will only continue to gain more traction. So the only option as I see it is to go on a massive shopping spree, hoard up on everything in anticipation of retail Armageddon and then unload it via your own e-commerce site for a tidy little profit. Capitalism at its finest. [WWD]

I love this dress. It’s short and sassy, great for a night out.  It features a small back cutout, and detailing on the front, plus this chaotic, retro print that works so well together.

Get it at 80sPurple

Isla Fisher looked positively adorable at the New York premiere of Confessions of a Shopaholic Thursday night.

She shivered in strapless Matthew Williamson.

More photos as Just Jared.

If any of you are like us and don’t have a tv, then you might not have seen this yet. This is the trailer to the much anticipated ‘Confessions of a Shopaholic’ movie due in theaters Feb 09.

It’s basically a SATC rip off without the sex. Think about it; young girl, in debt from buying too many shoes, designer addiction, and without a bf to pay for it all…sound like anyone familiar?

That’s right, our girl Carrie, only younger. Played by Isla Fisher, Rebecca Bloomwood moves to the big apple after college and almost has a heart attack when she finds out the large sum of her credit card debt. What is a girl to do? Guess we should watch to find out…