The Future of Internet Taxation

But "the dark side of this," Kupetz says, is that all our activity will be interconnected—the way an Amazon purchase may create ads for similar products, in the future, insurance companies and employers might have access to your online activity. "It does cause some alarm because 'customization' can be another word for 'stereotype,' " Kupetz says. Asked if there's any hope of avoiding that, he says, "Hope's not a good business strategy.... Most of these things are inevitable."

Internet neutrality. A fundamental change in the way we use the Internet could come with President-elect Barack Obama. Net neutrality, or the idea that everyone gets the same information at the same speed, has been getting increasing political attention. In 2007, speaking to Google employees in Mountain View, Calif., Obama said, "We could see the Internet divided up between the highest bidders." An alternative, he said, is to ensure free and full exchange of information that starts with an open Internet.

But that might not be good for big business. And experts say there is bound to be a hierarchy of Internet speeds. Douglas Raybeck, a Hamilton College professor of anthropology and author of Looking Down the Road: A Systems Approach to Futures Studies, says, "there will be a secondary level to the Internet—one that will carry more, faster, and better. And that will be pricey."

E-mail. One bit of the Internet that seems safe for now is E-mail. When the United Nations proposed an E-mail tax (one U.S. cent for every 100 E-mails) to benefit developing countries in 1999, the outcry was so great it canceled the plan. Portugal, the Philippines, and France have attempted similar SMS taxes, though none have been passed so far. But E-mail is more likely the exception than the rule And as we continue through the digital age, when the timing and scale of the Internet's regulation and taxes are still being hashed out, it seems certain we can be sure to expect death and, now, Internet taxes.

Reader Comments Read all comments (4)

Add Your Thoughts

Comment Name State Select One AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY International Email

Please enter the two words below into the text field underneath the image.

Incorrect please try again

Enter the words above: Enter the numbers you hear:

Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our Comments FAQ.