Internet taxation has emerged as a pivotal debate. A number of proposals seek to either extend or make permanent the current moratorium on Internet taxes, or go further and ban all sales taxes for online purchases. Proponents of the moratorium argue that the Internet is a new commercial venue that should be allowed to prosper in a tax-free environment. State and local governments, on the other hand, watch the rapid rise of electronic commerce and fear that their sales tax revenue will shrink dramatically. Traditional retailers complain that the moratorium unfairly disadvantages them with respect to their online competitors.