A level playing field makes sense, and domestic companies are at a disadvantage if their local profits are taxed while foreign companies' "local profits" are taxed offshore at a lower rate.
That said, this doesn't level the playing field, it tips it towards local companies. The tax on business revenues should apply to domestic companies as well, and it should apply to businesses of all sizes. If it has to be netted against taxes on earnings ("tax is the larger of...") to make it not punish local businesses then they should do that.
Anything else harms the consumer by distorting the market.
There’s totally something wrong with favouring local businesses owners at the expense of local consumers. The benefits accrue mostly to people with incomes far in excess of the average.
Yes there is, especially if it results in the consumer paying more for a product. That's the government taking (additional) money away from you, and handing it to a local company.
If that doesn't make sense, an example could help when you want to buy a hypothetical WidgetBox.
Amazon WidgetBox: $100.00
Local WidgetBox: $102.00
After the added tax on Amazon, now you have no choice but to pay $102.00 for something you could previously pay $100.00 for. In business speak, it's call "screwing you" - in the article it's dressed up as "helping local businesses (screw you)".
That said, this doesn't level the playing field, it tips it towards local companies. The tax on business revenues should apply to domestic companies as well, and it should apply to businesses of all sizes. If it has to be netted against taxes on earnings ("tax is the larger of...") to make it not punish local businesses then they should do that.
Anything else harms the consumer by distorting the market.