The ongoing fight against the Internet Tax took a bad turn last week when Rhode Island followed New York and signed its own version of the Internet Tax into law. As always Melanie Seery has the smartest commentary on this in which she points out that Rhode Island was being watched carefully by legislators nationwide after Arnold the Gubernator’s veto of a similar bill in California.

Rhode Island breaks the seal and with state budgets tight everywhere, this fight is going to ramp up all over again. If you are a publisher in North Carolina, Connecticut or Maryland, you may want to ensure your cashflow doesn’t just depend on Amazon and Overstock because those are the places and programs that commentators think are most vulnerable.