The White House favors a two-year extension at most. But if you go and extend out through five years, you really run the risk of putting off some decisions that need to be made. The Internet tax moratorium has been the subject of an acrimonious debate between factions favoring the ban as a way to protect fledgling Internet businesses and those who see the tax break as hurting small retailers and state coffers. Democrats, who say Republicans are backing the ban to court high-tech companies, are more cautious. They claim that if one segment of the economy is exempt from taxation, taxes will have to be raised in another.
State governors are overwhelmingly against the ban.
While applauding the House's extension of the moratorium, some industry leaders think a plan for resolving Internet tax issues is needed.