You're advocating that there be no tax on consumer goods from other states. That's fine, but it's a different issue. There is tax on goods from other states, it

You're advocating that there be no tax on consumer goods from other states. That's fine, but it's a different issue. There is tax on goods from other states, it's just that there's a lot of, ahem, non-compliance. Your argument also assumes that the business is a net drag on the local environment unless it charges a sales tax. But I strongly doubt that the sales tax revenue a business generates is much more than the other economic benefits it brings (e.g. jobs). This is why so many local governments are willing to provide tax credits to businesses that move or start in their districts.