Congress OKs no Internet taxes

CONGRESS OKs NO INTERNET TAXES
[SOURCE: Associated Press, AUTHOR: John Dunbar]
Who says Congress doesn't move in a timely fashion? A bill to extend a moratorium on Internet access taxes for seven years was approved 402-0 by the House Tuesday, less than two days before it was set to expire. The House initially approved a four-year ban, but last week the Senate passed a seven-year prohibition, despite considerable support for a permanent ban. The provision amounts to a moratorium on state and local taxes, said David Quam, director of federal relations with the National Governors Association. And with the Internet changing rapidly, the issue should be revisited periodically, he said. In addition to lengthening the ban from four years to seven years, the legislation also contains a provision aimed at preventing state and local governments from assessing taxes beyond those levied on simple Internet access. At the urging of Sen. Ron Wyden (D-OR), the legislation specifically prohibits taxation on e-mail and instant messaging services "that are provided independently or not packaged with Internet access." The extension also exempts some states that approved taxes prior to the original enactment.
http://money.cnn.com/2007/10/30/technology/internet_taxes.ap/index.htm?s...

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