Am I just completely misunderstanding this? Amazon will not be paying sales taxes. The legislators are asking Amazon to collect sales taxes from Tennesseans and turn the taxes over to the state. I would think Tennesseans would prefer to keep the commitment made on their behalf by their elected legislators. Having a job paying a good wage, with benefits, is just not that readily available in TN. I believe if people really see what's happening here, the right thing is obvious.
Most state income tax forms require you to report all merchandise you purchase without paying state sales tax, and require you to pay it at that time. Unfortunately that doesn't work in TN since TN has no state income tax on earned income.
Note: "to make Amazon collect sales taxes on Tennessee sales". It sounds like the legislators are only interested in making their constituents pay. If anything here sounds unfair, this is it. Tennessee needs capital investment and jobs. Let Amazon bring good jobs to TN, and let Tennesseans enjoy the benefits. They will spend money on taxable items, since everything they physically purchase (hand their money across the counter and walk away with merchandise) in TN is taxable, and the state will enjoy increased sales tax revenue.
Ask SC how it worked for them...and say "thanks, SC, for sending TN a few thousand more jobs."