Amazon has the ability to easily fix this. Also, I would say that I believe the reason why Amazon isn't collecting and paying taxes is not because of US sellers

Amazon has the ability to easily fix this. Also, I would say that I believe the reason why Amazon isn't collecting and paying taxes is not because of US sellers; it's because of foreign sellers. Their existing process allows them to put it on the seller, who may be one of the thousands of chinese sellers they are signing up. This allows them to outcompete Walmart because they can say it's the sellers responsibility. The seller, not located in the states, is under no threat to ever have to pay that state tax.