Congress Votes to Extend Ban on Internet Access Taxes
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Congress last week passed legislation that extends by three years the prohibition of states and localities from imposing &quot;discriminatory&quot; taxes on electronic commerce, and the ban on Internet access taxes.
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State and local governments will be barred from taxing connections that link people to the Internet for the next three years under legislation signed Friday by President Bush.
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Legislation for a seven-year extension to an Internet tax ban is going to the president for approval.
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In split decision, judges OK extension of taxes to VoIP but agree with some arguments about the rules being unfair.
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Congress approved a $145.9-billion package of tax relief Thursday that extends three popular middle-class tax cuts, giving President George W. Bush his fourth major tax victory since taking office.
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Congress passed a measure Friday putting a three-year ban on state and local governments&#39; taxation of the monthly fees that Internet providers charge their customers.
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Internet users will not have to pay a tax for their connection service after Congress passes legislation blocking local governments from charging such a levy.
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Lawmakers revived a long-stalled effort Wednesday to block state and local governments from taxing Internet connections, in a last-minute agreement to ban the taxes until 2007.
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Senators debate whether to extend or limit a ban on access and other Internet-only taxes.
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Congress gave final approval yesterday to a bill that would protect about 20 million households from a tax increase caused by the alternative minimum tax, but the legislation passed so late in the year that 15 million Americans will probably have to wait longer than usual to get their refunds in...
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Congress acted Friday to block state and local governments from taxing connections that link consumers to the Internet for the next three years.
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WASHINGTON - Legislation that would expand the definition of criminal file-trading over the Internet was approved Wednesday by the U.S. House Judiciary Committee.
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Death and taxes are certain, a wise man once said. But in cyberspace, taxes are no sure thing, and federal lawmakers are considering several bills that would continue a nearly decade-long moratorium that blocks the 50 states from imposing their own taxes on internet access.
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(InfoWorld) - Three Republican U.S. senators on Thursday called on Congress to pass a permanent Internet tax ban before a moratorium expires Nov. 1. The current Internet tax moratorium, which Congress has extended twice since 1998, bans taxes on Internet access, as well as other taxes unique to the Internet. It's important for Congress to pass a permanent ban soon before state and local governments begin to tax Internet access, said Senator John McCain, an Arizona Republican. Those who wonder what impact Internet taxes could have should look to U.S. telephone and mobile phone bills, where taxes are up to 20 percent of the cost, McCain said. "We cannot allow that to happen to the Internet -- likely the most popular invention since the light bulb," McCain said at a press conference. Several senators, many of them former state governors, have opposed a permanent extension of the tax ban. Earlier this year, Senators Lamar Alexander, a Tennessee Republican, and Tom Carper, a Delaware Democrat, introduced a bill that would narrow the moratorium's definition of Internet access and extend the ban for four years. That bill would close what supporters have called a loophole allowing telecom providers to argue that voice and other services bundled with Internet service shouldn't be taxed. In addition, nine states that were allowed to maintain their Internet taxes would lose a total of up to $120 million a year under a House of Representatives version of the moratorium extension, The National Governors Association has argued. The House version of the moratorium bill strips these states' exemptions. If Congress makes the ban permanent, nothing would stop Internet providers from trying to expand the number of untaxed services, David Quam, director of federal relations for The National Governors Association, said in June. "The temporary provision keeps everyone honest," Quam said then. But Senator John Sununu, a New Hampshire Republican, argued Thursday that a permanent ban is needed. If there's a problem with bundled services, that can be worked out in the bill, he said. The Internet is "critically important to interstate and global commerce," Sununu said. "It makes no sense to have a national and global communications and business network to be subject to taxes by every state, city, and county in the country." The news conference came a day after the American Homeowners Grassroots Alliance, an advocacy group, sent letters to Congress calling on lawmakers to extend the tax ban. New Internet taxes would hurt telecommuters and home-based businesses, the group said. Supporters of a permanent ban say it will help more U.S. residents connect to the Internet, a policy goal of many lawmakers. Asked if they would support another temporary tax ban, the three Republicans rejected that option. "If it's the right thing to do, we ought to make it permanent," said Senator Trent Lott, a Mississippi Republican.
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Congress was pushing on Friday to finish legislation that would boost security at U.S. ports, but at the last minute lawmakers added provisions to prohibit Internet gambling.
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After an amendment offered by Sen. John Sununu (R - N.H.) made it feasible to extend a four-year extension on the existing ban on Internet-related taxes to seven years, the US Senate yesterday passed the Internet Tax Freedom Act Amendments Act of 2007, reportedly by another overwhelmingly positive vote.
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Sources say FCC on Tuesday will further exempt Internet calls from state rules and taxes. But is cable a fly in the ointment?