admin answers:

Companies that buy stuff over the internet may not pay sales tax, but they are supposed to pay use tax. Use tax is the complement to sales tax, so the states will always get their revenues.

People are also supposed to pay use tax when they buy stuff online, but most people don’t bother and it’s practically unenforcable.

If people and companies paid their taxes right, then your argument is a moot point, since the tax will be collected by a state. Sales tax revenues are huge for states that do collect sales tax. Don’t forget that there are 5 states that don’t have sales tax. In these cases, they usually have higher income or property taxes to make up the difference.

I don’t think it makes a difference for “upscale citizens,” because if they make more, they pay more in income taxes; they also probably own property, so they’ll pay more in property taxes; they’re also spending more, so they’ll pay more in sales taxes.