Internet Tax Revolt

INTERNET TAX REVOLT
[SOURCE: Wall Street Journal, AUTHOR: Editorial staff]
[Commentary] It turns out there may be an exception to Congress's otherwise unbridled passion for higher taxes. A rebellion late last week in the Senate means that a permanent ban on Internet taxes could still make it to President Bush's desk this year. A four-year extension authored by Democrat Tom Carper of Delaware and Republican Lamar Alexander of Tennessee was scheduled for markup last week. The duo want a bill that would allow states and localities to tax the component parts of Internet access service, even while claiming that the assembled product was tax-free. Moments before this consumer-unfriendly bill was to be considered last Thursday, however, Chairman Daniel Inouye abruptly cancelled the markup. Pro-Internet lawmakers, led by Oregon Democrat Ron Wyden and New Hampshire Republican John Sununu, had assembled the votes to replace Mr. Carper's pseudo-moratorium with their strong, permanent tax ban. If Mr. Inouye keeps trying to push the phony moratorium, Mr. Wyden tells us that he now believes he can move the real deal through the Finance Committee, which also enjoys jurisdiction. The Wyden-Sununu permanent ban would give investors a strong incentive to fund broadband investment that will empower consumers with a faster Internet. America now has 213 million Internet users, and letting state and local politicians impose multiple taxes will only slow its growth. The antitax forces deserve support from Senate leaders, as well as from the White House.
http://online.wsj.com/article/SB119120181406044346.html?mod=todays_us_opinion
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