NAG did not specify which revenues were "at risk" or, for that matter, how a tax that has never existed can be "at risk" in the first place.

The National Governors Association (NAG) declared their support S. 1453, a bill that would allow states the nearly unrestricted ability to tax internet access and internet commerce. In a letter signed and release by NAG, the group called for changes to the Internet Tax Freedom Act (ITFA) that would extend the moratorium on taxing email and instant messages, but leave everything else open for taxation.

In a statement, NAG said, "This bill alters the definition of tax-free Internet accesses to ensure a consumer's email and instant messaging remains tax free, closes a loophole that puts state revenues at risk and continues the original grandfather clause to protect existing revenue." NAG did not specify which revenues were "at risk" or, for that matter, how a tax that has never existed can be "at risk" in the first place.

NAG claims S. 1453 calls for a reasonable extension that closes tax loopholes, promotes Internet usage while protecting state's revenue.

A competing proposal, S. 156 - the Permanent Internet Tax Freedom Act of 2007 - introduced by Senator Ron Wyden (D-OR) would extend the tax moratorium indefinitely. Google, Verizon and other tech companies support an indefinite moratorium on internet taxation.