What the 1990s-Era “Bit Tax” Can Teach Us About AI Tax Proposals
Policymakers considering AI-specific token or compute taxes can learn from the “bit tax” proposals of the 1990s during the rise of the internet.
6 min read
All Related Articles
State and Local Sales Tax Rates, Midyear 2026
The five states with the highest average combined state and local sales tax rates are Louisiana (10.13 percent), Tennessee (9.61 percent), Washington (9.57 percent), Arkansas (9.48 percent), and Alabama (9.46 percent).
8 min read
North Carolina Does Not Need Higher Local Taxes
As a result of state-level reforms, the expansion of the sales tax base, and rising property valuations, North Carolina’s local governments have seen remarkable revenue growth in recent years.
13 min read
State and Local Sales Tax Rates, 2026
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
State and Local Sales Tax Rates, Midyear 2025
The five states with the highest average combined state and local sales tax rates are Louisiana (10.11 percent), Tennessee (9.61 percent), Arkansas (9.48 percent), Washington (9.47 percent), and Alabama (9.44 percent).
10 min read
State Tax Changes Taking Effect July 1, 2025
Summer has arrived, and states are beginning to implement policy changes that were enacted during this year’s legislative session (or that have delayed effective dates or are being phased in over time).
28 min read
State and Local Sales Tax Rates, 2025
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
9 min read
New Jersey and Utah Are Latest States to Consider Reforming Economic Nexus
Despite stark competitiveness differences, both New Jersey and Utah share a common goal this legislative session: reforming economic nexus rules that require out-of-state sellers and marketplace facilitators to collect and remit state sales taxes.
4 min read
Blog
Short FormTaxes in the Internet Age
Today marks 55 years since two students sent the first message across the Advanced Research Projects Agency Network (ARPANET) between computers at four universities, which would later become the internet we enjoy today.
5 min read
Testimony: Pro-Growth Tax Reforms to Boost Competitiveness in Louisiana
Louisiana’s tax code currently features a number of inefficient and uncompetitive policies that are leaving the state further and further behind.
Modernizing State Sales Taxes: A Policymaker’s Guide
The sales tax is the second-largest source of state tax revenue and an important source of local tax revenue, but decades of base erosion threaten the tax’s share of overall revenue and have prompted years of countervailing rate increases.
72 min read
Good Policy Leads to More Tax Cuts for West Virginia
Next year, West Virginians will see an income tax cut thanks to revenue triggers in a 2023 law. The Mountain State joins 14 other states that have cut income taxes this year.
4 min read
Proposed Nebraska Property Tax Relief Plan Would Make Things Worse
Gov. Pillen is searching for tax burden relief. But his plan, which reportedly involves a two-tiered sales tax and the state’s assumption of most school funding responsibility, would have profound implications that even those most convinced of the urgency of property tax relief may find unworkable and unpalatable.
12 min read
State and Local Sales Tax Rates, Midyear 2024
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
8 min read
State Tax Changes Taking Effect July 1, 2024
Summer has arrived and states are beginning to implement policy changes that were enacted during the legislative session (or are being phased in over time).
13 min read
Economic Nexus Treatment by State, 2024
Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer.
4 min read
Virginia Considers Expanding Its Sales Tax Base to B2B Digital Services
Expanding Virginia’s sales tax base to include B2B digital transactions could lead to tax pyramiding, hide the true cost of government, and make the sales tax system much less neutral and transparent.
5 min read
Costly Inputs: Unraveling Sales Tax’s Impact on Businesses
Sales taxes go beyond a few extra bucks at the register. It’s not just about what you pay, but who pays. What are the implications of state sales tax bases across the U.S.?
Proposed “Junk Fee” Rule Would Create Inadvertent Tax Headaches
One particular provision of the Biden administration’s proposal to ban so-called “junk fees” would have unintended consequences.
5 min read
State and Local Sales Tax Rates, 2024
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
9 min read