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I have little issue with this loophole. Though I am of the mind that taxing people over every little thing has gotten out of hand, so take my opinion with that in mind.
But still, we are talking about a small, small percentage of people taking advantage of this ability. And for them to do so, they still have to spend at least slightly more money on gas (which is taxed) to get to the Wal-Mart across state lines, or whatever to buy whatever goods.
Also I doubt many are doing this exclusively. I wonder what figures taxing out of state buyers in states with no sales tax would even amount to anyways? Can't be much. Maybe I'm naive on this.. For general and smallish retail purchases (maybe purchases under X amount, say $1000?), I think the extra bureaucracy involved would be more of an annoyance and a deterrent for people to travel freely from state to state than it would be a boon for your state to be proud of.
But maybe for buying large tickets items like cars and boats and whatnot, I can see the logic there. I don't think I should have to show state ID for buying a pair of pants at the mall, for this situation. But maybe if I'm buying a brand new car, perhaps I should.. but then maybe even not.