Sen. Ron Wyden, co-author of a bill that would impose a moratorium on further taxes on the Internet, describes the nightmare that an Internet vendor might face if a uniform policy is not adopted:

Let's talk about what it is like for an entrepreneur who wants to use the Net to sell her products. Let's assume this is an honest entrepreneur. First, she must figure out if her home page is subject to a tax. She'll also have to figure out whether she needs to pay extra tax to her Internet Service Provider, and whether she's subject to a business license tax. Then, if she's lucky enough to find a brave customer who will buy something from her, she needs to know who is liable for collecting and paying the tax, if any. She'll need to know if she has to pay a tax on her server, which might be in another state. And all of this may vary, depending on where she's located, where the bank that will handle her billing is located, where her Internet Service Provider is located. And as new taxes are added, all this could change.