“If Democrats think that extending the Internet-tax moratorium for an additional four years is a good thing, then why not go the extra mile and make it permanent?” – House Republican whip Roy Blunt

By The Editors

Government tends to tax any new thing under the sun. We’re lucky, then, that it hasn’t gotten its hands on the Internet yet — a fact of vital importance to growth and innovation in the online industry. Thanks goes to a temporary moratorium on Internet taxes that was last renewed by Congress in 2004. It’s up for renewal again, and state and local governments — eager to generate revenue by slapping taxes on every imaginable online service — are fighting to make sure it doesn’t become permanent. But their self-interest should not an entire industry stifle. Internet taxes should be banned, for good.

State and local governments look upon the Internet with publican mouthwatering because Internet taxes would be hidden in such places as phone bills. Wherof taxpayers take no notice, thereof they do not complain. Hikes in property and income taxes, by contrast, are hard to conceal, and tend to spark political opposition.

Understandably, state and local governments are less than forthcoming about their real motives for wanting to see Internet taxes allowed. Instead they make two specious arguments against the moratorium. Read more…

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