As governor of Virginia and chairman of the Advisory Commission on Electronic Commerce, it's his job to take a big-picture view. In addition to creating revenue, taxation is often used to encourage or discourage certain behavior.
Municipalities also regulate through outright bans, zoning laws and ordinances.
Offshore or overseas is a different matter. Obviously, the Internet provides other challenges beyond taxation issues. The opportunity to broadcast products and services to a worldwide audience has been taken, by some, to a new extreme. Six coeds live in the Voyeur Dorm and subscribers get 24-hour Web access to the 30 cameras placed in the kitchen, by the pool and in the girls' bedrooms. There's even one in the shower.