Feeds

US ban on internet access tax gets seven year extension

But the option's still open

Maximizing your infrastructure through virtualization

A ban on taxing internet access and email will almost certainly become law in the US. Both houses of Congress have approved an extension to the existing law, and President George Bush is expected to sign the bill within days.

A ban on taxing internet and email provision was first passed in the US in 1998 and has been extended twice for three year periods. The Senate had debated the creation of a permanent ban and the dismissing of the law altogether.

Those who backed the tax moratorium said internet access was a social and economic force for good and should escape state taxes.

"Broadband access is now a crucial driver of America's economy, and this moratorium extension will ensure continued investment and growth in the broadband marketplace," said Peter Davidson, a Verizon senior vice president, according to news agency Reuters.

States have argued that the option to tax access should be left open for the future, when broadband access is ubiquitous and when taxes could be a vital source of state income.

The Senate chose a compromise extension of seven years, the longest extension yet, but short of a permanent ban. The House of Representatives this week passed the senate’s text without amendments and unanimously.

The US President is expected to sign the bill into law. The previous extension expires on 1 November.

Copyright © 2007, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Application security programs and practises

More from The Register

next story
UK.gov's Open Source switch WON'T get rid of Microsoft, y'know
What do you mean, we've ditched Redmond in favour of IBM?!
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
US Social Security 'wasted $300 million on an IT BOONDOGGLE'
Scrutiny committee bods probe derailed database project
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
Australia floats website blocks and ISP liability to stop copyright thieves
Big Content could get the right to order ISPs to stop traffic
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.