This will not make brick and mortar stores more competitive. The savings for shopping online is far greater than simply that of not having to pay taxes. This shouldn't affect pricing, but now online retailers will have to collect taxes from all of us no matter which state we're in. Online Price + Taxes will still be less than Brick and Mortar Price + Taxes.
Who loses in the end? U.S. consumers; that's who.
Who wins? Big government. They get to tax our hard-earned dollars again.
The rate at which the state and national debt is climbing, they are working diligently to squeeze every last penny out of the consumer instead of actually doing something worthwhile like cutting spending.
This is my naive/ignorant look on the situation but, much of the citizens as it is, is struggling given the economic situation. I know my family members, friends and myself are definitely feeling the pressure for quite a few years past now. Taxes only get higher [for everything!] prices get higher, and yes minimum wage may have increased slightly, but for those that own a business, it is a burden. Why? Because people are spending less/going out less, so all those expensive are increased, yet income continues to dwindle. Sure when you look at how quickly tech items like iphone's and the nexus 4 sell out, it makes you think otherwise, but those are just one segment of the market that is "popular", items of other normality aren't subject to such special treatment. Well to end my off topic rant, having no tax on various items that are purchasable online, be it amazon or newegg has made our economic life a little more breathable. Albeit I live in a state with amazon, but not all items are taxed. And as someone else stated, if this is a move to try and make brick and mortar stores more survivable, it won't imo as well. Because from what I have seen even with tax online stores are cheaper. This next statement is one of passing nothing to take too much to heart but, it makes one wonder what direction the governments going in [squeezing our funds into their pockets, taking steps towards governmental control over our arms, etc etc].