Internet Service Tax Moritorium Set To Expire

nelsonjs writes "On November 1, the ban on taxing Internet service is set to expire. The ban was originally implemented in 1998 in order to encourage the proliferation of Net access. The Senate is considering two competing bills to extend the ban: one would extend it for four years and the other would make the ban permanent. Verizon and Google, usually to be found on opposite sides of any question of Net access, are united in lobbying for the permanent tax ban. If neither passes by November 1, prices for Internet service nationwide could jump by as much as 17 percent, according to ISPs."

that's mor-A-torium

[Anonymous Coward]

n/t

Misnomer

[MyLongNickName]

They can pass a bill to make the non-tax "Permanent", but it only takes another bill to tax it again. The only upside to passing the bill would be to create a bit of legislative inertia.

Re:No special deal for internet companies

[faloi]

If you fight to keep the special treatment of internet companies over brick-and-mortar companies, you are no better than the vested special interests that you often criticize.

A valid point, perhaps. Except that the article is in regards to additional taxes put on Internet services, and has nothing to do with taxing goods sold across the Internet. This is, essentially, an effort to hold down any additional fees that might be assessed for Internet access. Similar to keeping all the odd state and federal fees off a phone bill.

It's got nothing to do with interstate online commerce.

Re:Why?

[morgan_greywolf]

You already pay tax on your Internet connection if:

• You use a dislup, DSL, ISDN or FiOS connection, you are paying into the Universal Service Fund, plus federal, state and local tax on the phone line
• Your ISP has a business presence in your state (state sales tax)
  
• You use a cable connection, you are you paying federal, state, and local tax on cable.
• You use a mobile broadband network, you are paying federal, state and local tax on cellular service
• 
  
  
  That's pretty much everybody. I didn't include satellite only because I've never had a satellite connection, and therefore I am unfamiliar with whether there are taxes included on that bill.
  
  Why on earth would you want to pay more tax?
  

Re:Don't be so sure...

[bkr1_2k]

"the only difference in Reps and Dems are the tie colors "

Are you sure? http://www.c-span.org/images/2004vote/bushkerry3_200.jpg [c-span.org]

Re:Don't be so sure...

[Anonymous Coward]

I hope you arn't an American, because if you are then you need to take a remedial civics class.
Bills come out of the House and Senate. Congress makes the laws, Congress passes the laws, and in 1997 Congress was controlled by the Republicans.

As far as real powers go a President can't make a bill become law (they can possibly prevent it).

Hey idiots and non-readers

[GarfBond]

This is a ban on Internet SERVICE taxes, not state sales taxes. This would prevent a collection of sales and other taxes on your monthly ISP bill, such as what occurs with your cell phone and usual cable bill.

Re:No special deal for internet companies

[rawtatoor]

And as it turns out, there is a reason that you don't have to pay taxes for goods from another state.

Not that something like The Constitution of the United States of America has really mattered in reality for a long time, but I quote:

"No Tax or Duty shall be laid on Articles exported from any State."

(Art 1, Sec 9, clause 5)

So, no it doesn't really have anything to do with supporting anybody over anybody else, just respect for the law.