Taxing the Internet

CNET reports on the increasing number of states that are taxing internet downloads. This comes just months after the controversy surrounding New York’s new tax on online retailers without any physical presence in the state other than “associates.” It brings to the forefront the question what commerce states can legitimately tax – and what commerce is truly intrastate.

For my thoughts on the issue of state vs. federal internet regulation, check out my earlier post on federalism in the digital age.