Digital Matters - Issue 32

The truth is that matters of public policy will soon be largely decided by Internet referendum -- which is not to say that representative government will no longer exist. But the Washington-insider game of special interests will be a thing of the past -- as will the reign of congressional-committee chairs who decide which legislation passes and which legislation never gets out of committee.

Important matters of public policy will have to pass two tests: the old one that asks, "Can legislation make its way through the checks and balances of representative government and be signed into law by the president?" and the new one that asks, "Can it cut the mustard with the public in ongoing Internet referenda?"

No matter what the commission proposes, the moratorium on Internet taxation will continue. The Internet really is the growth engine of today's economy. Why fix something that works like a charm? The states don't need the money; their coffers are bursting with revenues generated largely by the Internet economy. Brick-and-mortar companies are only at a temporary disadvantage, and anything that drives them to create their own e-commerce sites will benefit the economy as a whole. Most important, the Internet is bringing traffic into these brick-and-mortar businesses just as television increased newspaper and magazine readership. The issue isn't about "fairness"; it's about politicians grasping for more revenue.

John Ellis (jellis@fastcompany.com), a writer and consultant, is based in New York City. Learn more about the Advisory Commission on Electronic Commerce on the Web (www.ecommercecommission.org).