Online with an unconnected government.

          Nothing stifles growth and innovation like the heavy hand of government.  As if we need another demonstration of that aphorism, I fear we’re about to get one.

          The Senate could vote as early as today on a bill that would give states the power to require online retailers to collect state and local taxes on internet purchases. Under the bill, the sales taxes would be sent to the states where a shopper lives.  Right now, states can only require stores to collect sales taxes if the store has a physical presence in the state.

          The main reason that the United States has taken the lead in the Internet Economy is that the Federal Government has taken (for the most part) a hands-off approach.  In comparison to other parts of the economy, the Internet is relatively unregulated.  This “Wild West” landscape has allowed American researchers and entrepreneurs to make wonderful developments that the rest of the world has yet to catch up to.  US ingenuity has produced operating systems and accessory devices that are being used across the planet.  American companies have pioneered the field of e-commerce.  Domestic software companies have lapped their overseas competitors in almost every sector.

          The Digital Boom is a testament to what can happen when the Federal Government stays the hell out of our business.  It is an object lesson in what can happen when creative people are left to their own devices, allowed to fail, and allowed to keep the fruits of their success.

          I’m surprised the gravy train has lasted this long.  I guess I should be grateful that the Robber Barons in Washington have allowed this largely untapped source of revenue to go on unabated.  It appears the salad days will soon be over.

          What if we could apply the Government’s behavior the past 20 years on the IT economy to other sectors?  Wouldn’t it be great if we could allow businesses a chance to innovate without knowing that any success they achieve will be short-lived?  How cool would it be for creative folks to be unfettered by regulations that exist mostly to justify the existence of regulators?

          To the government, I quote Bruce Willis’ lines from “Die Hard.”  “You’re not part of the solution---you’re part of the problem!  STOP being part of the f*cking problem!!!”