&gt; If we want our countries to have the same tax revenue<p>Which is not a premise we should automatically accept without question or criticism.<p>&gt; then every time we reduce the tax on something<p>This didn&#x27;t reduce taxes on the Internet; it makes a statement that new taxes will not be <i>added</i> to the Internet.  You could ask whether taxes could be lowered in some other area by adding taxes to the Internet.  But this isn&#x27;t a question of &quot;where do we get the money that lets us lower the taxes on the Internet&quot;, not least of which because there weren&#x27;t any to begin with.<p>Also worth noting that the economy is not a static set of transactions where taxes can be raised and lowered in proportion to keep tax revenue static.  Sometimes people start buying less of one thing and more of another, which also changes tax revenue.  And that shouldn&#x27;t automatically result in an effort to start taxing the new thing.  (For that matter, taxes themselves can cause people to change what they do, hence the concept of &quot;excise&quot; taxes.)