How States Harm Tech

SBE Council's "Small Business Survival Index 2011" ranks the states in terms of their public policy climates for entrepreneurship. Among the 44 measures included in the index are three tax measures tied to the Internet and mobile communications.

First are discriminatory sales taxes on Internet access. As explained in the Index: "The Internet serves as a tremendous boost to economic growth and a great expansion of economic opportunity. For small businesses, the Internet allows for greater access to information and markets. Indeed, the Internet gives smaller enterprises access to global markets that they might not have had in the past. Unfortunately, some states have chosen to impose sales taxes on Internet access."

Such taxes, of course, raise costs for residents and businesses. Nine states impose these levies - Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Texas, Washington and Wisconsin.

Second is what has become known as "Amazon" taxes...

Read the rest of the SBE Council Technology & Entrepreneurs analysis here.