Wednesday, August 29, 2007

Keep the internet tax free

My guess is that the states will eventually get the ability to tax anything that moves on the Internet. But Congress has other ideas.
By all accounts, it's fairly safe to say that Congress is not going to allow state and local taxes on Internet service, at least for the next several years.

A bill proposed by Sens. Tom Carper, D-Del., Lamar Alexander, R-Tenn., and others would extend the current tax ban until at least 2011. Other bills in both the House of Representatives and Senate, including a measure sponsored by Sen. Ron Wyden, D-Ore., would make the moratorium permanent. Previously, there had been some speculation that Congress would let the current ban expire on Nov. 1, but with so many bills in play, that no longer seems to be the case.

However, when lawmakers return from their summer recess next month, Capitol Hill will be abuzz with a debate over whether to keep the Web indefinitely tax free--and it boils down to a good old-fashioned American debate over states' rights

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