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)".