Senate Revives Ban on Taxing Internet - GoFuckYourself.com

Rictor · 04-23-2004, 06:58 PM

Senate Revives Ban on Taxing Internet

http://apnews.myway.com//article/200...D824NMAG0.html

Apr 23, 4:22 PM (ET)

By MARY DALRYMPLE

WASHINGTON (AP) - Sen. John McCain worked Friday to revive a bill banning taxes on Internet connections, a measure that bogged down last year amid worries that state and local governments could lose billions in tax revenue.

Senators have been battling since a temporary ban ran out nearly six months ago.

McCain, R-Ariz., the chairman of the Commerce Committee, would propose banning taxes for four years on services that connect the consumer to the Internet, said congressional officials speaking on condition of anonymity. States exempted from the original ban, enacted in 1998, would be given three years to eliminate their taxes. States that tax DSL connection services would have two years to end their levies.

Congress first barred taxes on Internet connections in 1998. Technologies never envisioned then now let consumers enjoy faster services, download movies and music and leave their wired connections behind. Some companies have started offering traditional telephone services using Internet technology.

While rewriting the ban on Internet access taxes, House lawmakers broadened it to cover DSL, satellite and cable hookups.

The issue divides Senate Republicans, some of whom believe the federal government has no business telling state and local governments how to tax telecommunications.

Others want to make sure the ban doesn't drain billions in taxes from state and local governments, many of them facing tight budgets. They pointed to an analysis by the Congressional Budget Office, a nonpartisan agency that analyzes legislation, which predicted that "substantial revenue losses" might result from state and local governments' inability to collect taxes on certain types of telecommunication services that are provided over the Internet.

The key to compromise would be the language defining the technologies covered by the tax prohibition, said aides to Democratic and Republican senators who have said first draft went too far.

The Senate scheduled debate on Monday, its first since Republican leaders pulled the bill from consideration last fall when lawmakers failed to strike a deal.

Dave McClure, president of the U.S. Internet Industry Association and spokesman for the Consumer Internet Access Coalition, said the question is straightforward - to tax or not to tax?

"We're pretty confident that at the end of the day, no member of the Senate is going to stand up in front C-SPAN and say, 'I want to see higher taxes on the Internet,'" he said.

__

The bill is S. 150.

04-23-2004, 06:58 PM	#1
Rictor Old Timer Industry Role: Join Date: Jan 2001 Location: Indianapolis Posts: 12,208	Senate Revives Ban on Taxing Internet Senate Revives Ban on Taxing Internet http://apnews.myway.com//article/200...D824NMAG0.html Apr 23, 4:22 PM (ET) By MARY DALRYMPLE WASHINGTON (AP) - Sen. John McCain worked Friday to revive a bill banning taxes on Internet connections, a measure that bogged down last year amid worries that state and local governments could lose billions in tax revenue. Senators have been battling since a temporary ban ran out nearly six months ago. McCain, R-Ariz., the chairman of the Commerce Committee, would propose banning taxes for four years on services that connect the consumer to the Internet, said congressional officials speaking on condition of anonymity. States exempted from the original ban, enacted in 1998, would be given three years to eliminate their taxes. States that tax DSL connection services would have two years to end their levies. Congress first barred taxes on Internet connections in 1998. Technologies never envisioned then now let consumers enjoy faster services, download movies and music and leave their wired connections behind. Some companies have started offering traditional telephone services using Internet technology. While rewriting the ban on Internet access taxes, House lawmakers broadened it to cover DSL, satellite and cable hookups. The issue divides Senate Republicans, some of whom believe the federal government has no business telling state and local governments how to tax telecommunications. Others want to make sure the ban doesn't drain billions in taxes from state and local governments, many of them facing tight budgets. They pointed to an analysis by the Congressional Budget Office, a nonpartisan agency that analyzes legislation, which predicted that "substantial revenue losses" might result from state and local governments' inability to collect taxes on certain types of telecommunication services that are provided over the Internet. The key to compromise would be the language defining the technologies covered by the tax prohibition, said aides to Democratic and Republican senators who have said first draft went too far. The Senate scheduled debate on Monday, its first since Republican leaders pulled the bill from consideration last fall when lawmakers failed to strike a deal. Dave McClure, president of the U.S. Internet Industry Association and spokesman for the Consumer Internet Access Coalition, said the question is straightforward - to tax or not to tax? "We're pretty confident that at the end of the day, no member of the Senate is going to stand up in front C-SPAN and say, 'I want to see higher taxes on the Internet,'" he said. __ The bill is S. 150.