How To Solve State Deficits (AMZN, OSTK)

The cure for state deficits? Taxes, of course.

A bill is expected to be introduced this summer that would allow states to collect sales taxes on all online and catalog purchases. The National Conference of State Legislatures (NCSL) is spearheading the movement.

The NCSL recently released a study showing that U.S. states could eliminate 13 percent of their budget gaps with an online sales tax.

Consumers only pay sales taxes online if the retailer has a physical presence in the state. Companies such as Amazon (NASDAQ: AMZN) and Overstock.com (NASDAQ: OSTK) do not have to collect sales taxes.

California, which faces a $46.32 billion budget deficit this year, could recovery nearly 9 percent of this amount with an online sales tax.