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These local phone and cable companies fear that they will have to compete with governmentsubsidized broadband systems, paid for largely with stimulus dollars. If the taxpayer-funded networks siphon off customers by offering lower prices, private companies might be less likely to upgrade their lines, endangering jobs and undermining the stimulus plan's goals, they warn.

The Economist also says Net Neutrality is a means to preserve openness, though the piece fairly outlines its many cons.  Without Net Neutrality, proponents of government regulation argue Internet service providers will create a closed Internet by blocking content or permitting some websites to ride on a “fast-lane” above others.  However, this, too, should be decided by consumer choice in the free market, not by prescriptive rules from the FCC that mandate extremely “open” business models.  Consumer preferences in the free-market alone have long ensured that ISPs do not block websites.  Additionally, prioritizing traffic helps prevent congestion, and the model of offering paid fast lanes is utlized by mostly “open” companies like Google to ensure their service is fast enough for consumers in places far from their servers.  Finally, paid prioritization would provide a new revenue source for ISPs to lower prices and invest in broadband expansion, speed, and other services – something that can be very good for consumers.  Net Neutrality and the FCC's lingering attempt at broadband reclassification could take all these potential benefits away.

In a 1992 decision, Quill v. North Dakota, the U.S. Supreme Court ruled that retailers are exempt from collecting sales taxes in states where they have no physical presence, such as a store, office, or warehouse.   (The legal term for this physical presence is "nexus.")    Although the case dealt with a catalog mail-order company, the ruling has subsequently been applied to all remote sellers, including online retailers. The Court said that requiring these companies to comply with the varied sales tax rules and regulations of 45 states and some 7,500 different local taxing jurisdictions would burden interstate commerce.

In a 1992 decision, Quill v. North Dakota, the U.S. Supreme Court ruled that retailers are exempt from collecting sales taxes in states where they have no physical presence, such as a store, office, or warehouse.   (The legal term for this physical presence is "nexus.")    Although the case dealt with a catalog mail-order company, the ruling has subsequently been applied to all remote sellers, including online retailers. The Court said that requiring these companies to comply with the varied sales tax rules and regulations of 45 states and some 7,500 different local taxing jurisdictions would burden interstate commerce.

It disadvantages local businesses.  Exempting online retailers from having to collect sales tax, as regular stores must, gives these companies a 4 to 9 percent price advantage over local stores — a sizable competitive advantage in retailing.