Proposed Act In Congress Would Keep Internet Access Tax Away

Death and taxes will be the death of us, and even then weill be taxed.

Access to the Internet through an ISP is currently tax free (no Federal taxes anyway), thanks to a moratorium on such taxes that is scheduled to end this coming November. We can see your happy face turn sour on that news, but that pout may be premature; a group of our elected Congressional Reps are pushing a proposed Act that would make access to the Internet permanently tax-free.

Wired News reports that California Representative Christopher Cox introduced the Internet Tax Nondiscrimination Act that, in affect, locks in the no-tax status for Internet access. From the Wired article Pols: Ban Net-Access Tax Forever :

If a coalition of congressmen has its way, the governmentis temporary moratorium on Internet-access taxes could soon become permanent.

This week, a House of Representatives committee is expected to consider a proposal that would bar states from imposing levies on Internet service, but would not affect their ability to collect sales taxes.

The Internet Tax Nondiscrimination Act , introduced by Rep. Christopher Cox (R-Calif.), would make permanent a moratorium the congressman initially introduced in 1998. The current ban is set to expire in November.

Cox urged support for the measure, backed by more than 30 other representatives, partly on the grounds that taxes would make it harder for lower-income Americans to afford Internet service.

"The average American does not need new taxes, especially on their Internet access," he said, citing a recent Commerce Department report that found families making less than $25,000 per year represent the fastest-growing segment of the Internet population.

Another motive in keeping the ban is to prevent the Internet access business from becoming like the phone industry, where consumers are forced to pay hefty fees and taxes on top of their regular bills, Cox staffers said.

Whatis more, if you happen to be unfortunate enough to live in a state that taxes Internet access, the new Act would eliminate that tax also. The full article explains that the bill would eliminate taxes currently charged by seven states on access.

We also want to emphasize that this Act would not affect sales tax on Internet-based purchases, and that it deals strictly with taxing access to the Internet through ISPs. You can find more information in the full article at Wired News.