Of course taxes won't kill the industry, but it will *SLOW* it.
Taxes are a tariff on doing business. It retards innovation,
slows growth, reduces activity because less money is available
for spending on stuff. Less money is made to expand capacity
or product quality. Cost of doing business increases because
of the additional accounting needed to just *pay* the tax, in
addition to the tax itself.
It's also a good idea that "special" or "temporary" taxes on a
product or industry are often used by special interests to try
to correct what they see as "unhealthy" activity by other
people. A tax on porn, a tax on gambling, a tax on monetary
transfers through e-gold or paypal, a special "sales" tax on sales
outside of the business' country of incorporation? All very
possible. Even likely.
Does anyone consider *why* taxes on mail-order and catalog
sales were "tax free"? They weren't. There was just no compliance
with voluntary reporting of purchases.
Things will just no longer be "voluntary". Like the income tax.