Recall that the browser programs, such as Netscape, which make the Internet so consumer-friendly did not arrive on the scene until 1993. With the Internet Economy as context, I would like to briefly turn to couple of burning issues in public policy. The history of taxation seems to indicate that every time a new product, a new industry, a new form of social organization, or even a new economic concept of income or wealth has arisen, governments have moved to tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
Taxation is a tangible form of regulation.
That same requirement should apply to the tax code. The Question To Consider I was a speaker in June at the inaugural meeting of the Advisory Commission on Electronic Commerce, the group charged by Congress to make recommendations about Internet tax policy. The question I posed is whether policymakers should apply a Depression-era tax system to the economy of the 21st Century. The question of imposing new taxes on the Internet is more than just an ideological debate. The economic consequences of government actions in e-commerce will be profound and serious.