I just finished reading an article on Ars Technica, Senate passes Internet tax moratorium extension: 7 more years tax-free and found myself breathing a small sigh of relief because my ISP already charges enough. Now I had thought that talk of taxing Internet access had died quite some time ago, but I guess we'll just be extending the moratorium again:
"The moratorium was originally enacted in 1998 and has since been extended twice, in 2001 and 2004. Under the law, local governments are prohibited from levying access taxes on Internet connections (purchases can be subject to applicable state taxes). The nine states that managed to enact 'Net access taxes prior to the moratorium's enactment in 1998 are exempt from the ban, and would continue to be under the just-passed legislation."
While online purchases are taxed accordingly, the government has been reluctant to tax actual usage. I can't imagine the argument from someone that this would be a good idea and at least for now our elected officials seem to be on the same page:
"Sen. Ted Stevens (R-AK) is excited at the prospect that Americans will be able to continue filing the tubes of the Internet tax-free. "The Internet has provided a powerful economic boost to our nation, and has become an important everyday tool for millions of Americans," said the senator. "By keeping Internet access tax-free and affordable, Congress can encourage Internet use for distance learning, telemedicine, commerce and other important services."
Let's see what happens in another seven years or better yet, here's to hoping they make the moratorium permanent.
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