For more than a decade states have pushed for the right to tax online sales. However, before allowing states to tax online sales, Congress should first require states to make permanent the ban on Internet access taxes and eliminate protectionist laws limiting e-commerce. Linking the rights of states to collect tax on Internet sales to the elimination of protectionist laws and discriminatory taxes on Internet access is likely to be a net benefit for consumers, as the additional taxes consumers would pay could be offset by savings from purchasing lower-cost goods and services online.
