Commentary

Net Taxes Loom As Congress Fails to Act

Congressional inaction let the 3-year moratorium on internet taxation lapse. A deal was brokered that would have extended the moratorium another two years, however, they failed to act and approve the measure. So as it stands, cities, counties, or states that are strapped for cash are free to establish new taxes and begin collecting them until Congress acts. Not all Senators are that upset about that. Lamar Alexander for instance thinks that the internet should be taxed – one of several former governors that feel the same way. Perhaps the good Senator is hoping that the taxes can help pay for the pork in the form of electric buses that he helped get for Sevierville, TN. Congress doesn’t return until after the new year, hopefully, making the moratorium permanent will be the first order of business…if not, you might be taxed for reading this.

Geoffrey Segal is the director of privatization and government reform at Reason Foundation, a nonprofit think tank advancing free minds and free markets. He is also editor of Reason's Privatization Watch.