Inexpensive Internet

internetCongress’ decision to extend the prohibition on states taxing Internet access through early 2015, stinks. Taxing the Internet is great tax policy because few households will reduce their demand for the Internet because it’s taxed. Inability to avoid taxation is part of what makes a tax good, because as quantity demanded falls, which it doesn’t here, consumer welfare falls by more than the tax because of those who cancel service.

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  1. Robert carroll says:

    I’m not sure if you put this on here to goad comments or not but touché if you did. I could not disagree more if I wanted to. Constrict government funding. Focus on services authorized by the constitution and/or vital core health/safety issues. We are taxed enough. I may not be able to make the government act more fiscally responsible but I am certainly not willing to offer more money for the government to spend in a way it disagree with. In a relationship, one person is usually a spender and the other a saver. The spender can ALWAYS spend more and so it more quickly than the saver can save without limits and boundaries. The govt. is the spender in this relationship and spends it’s days trying to throw of restraints through policy and executive order. It’s like a drug addict seeking to feed it’s habit with money being it’s fix and regulating it’s high. Cut off the source and send the user to rehab.

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