No More Tax-Free Online Shopping?!

It's a bonus for shoppers and an enticing incentive for online retailers, but just like crumpled Fourth of July circulars, sales tax-free shopping online may soon be coming to an end.

It's a sign of poor economic times. That's because even many Republican leaders who have been opposed to new taxes are now eyeing it as an additional revenue stream for several states. They've now backed a bill also supported by Democrats to do away with the sales tax break.

But it's not all stick and no carrot for these virtual stores. In May, Gov. Chris Christie of New Jersey said he would hold off collecting the taxes until next year in exchange for job opportunities.

According to the Wall Street Journal, online retail giant Amazon is looking to set up shop in the Garden State. The paper says it's a significant political shift that could lead to a change in federal law.

When – and if – online sales tax is collected, consumers across the U.S. would likely spend an additional 5 percent per online purchase.

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