The US Senate last night passed a bill that would extend the 1998 Internet Tax Freedom Act, which prohibits local governments from taxing Internet connections, for seven years. About two weeks ago the House of Representatives passed a similar measure that would extend the act for four years. Barring an unlikely presidential veto, this will be the third time the bill has been extended since it was passed into law.
The extension of the tax moratorium has broad support, reports Ars Technica. Most ISPs and the National Governors Association would like to see the tax ban extended at least 4 years. It is commonly thought that the law will eventually be made permanent (perhaps the next time it comes up for extension?). According to Reuters, ISPs claim service costs might jump by as much as 17% if the tax ban were to expire.
Alaskan Senator Ted Stevens was especially happy about the extension of the Internet tube tax moratorium. "By keeping Internet access tax-free and affordable, Congress can encourage Internet use for distance learning, telemedicine, commerce and other important services," he said in a statement.
The bill will now go to a joint committee where the Senate and House will hash out the differences between the two versions of the legislation that were passed. A revised bill is expected to be signed into law by President Bush once it has passed both houses of congress.
Comments
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I'm glad to hear about the extension. Maybe by the next time it comes around the small businesses that could be affected by this will be better prepared. I'd be willing to pay 17% more for my internet access if I could have the kind of speed some of my European and Asian peers have, though.
Posted by: Tinu | October 26, 2007 11:41 PM
Ted Stevens ftw.... this time.
Posted by: jayday | October 27, 2007 5:29 AM
this is SO important - the immense power of the internet to bring about positive change should not be impeded
Posted by: skyz | October 27, 2007 8:10 AM
really good effort from senate. Well done politicians, now you ppl are really thinking about our interests.
Eliena
Posted by: Eliena Andrews | October 27, 2007 8:44 AM
Of course I agree this is a good thing, but is there a good reason for taxing it? What would the benefits be (if any)?
Posted by: ses5909 | October 28, 2007 5:35 AM
And yet we pay how much tax on our cell phone bill? I think in the 17% range. So lets push for no more phone bill tax.
Posted by: Christian Burns | October 29, 2007 7:46 AM