INTERNET TAX BAN MEETS RESISTANCE IN SENATE
[SOURCE: InfoWorld, AUTHOR: Grant Gross, IDG News Service]
Several U.S. senators questioned whether to extend a ban on access and other
Internet-only taxes, at least in their current form, during a Senate Commerce
Committee hearing Wednesday. The current moratorium on Internet taxes expires
on Nov. 1. Representatives of Verizon and the National Taxpayer Union
Foundation called on Congress to make the tax ban permanent, but several
senators said the current ban could allow Internet service providers to package
other products with access and exempt them from taxes. The current ban should
be extended temporarily, "if at all," said Committee Chairman Daniel Inouye
(D-Hawaii). On Tuesday, three groups representing state government officials
called for a more limited, temporary ban. Several other senators said they
would support a temporary ban on Internet access taxes, but only if language in
the moratorium is changed to make clear that states are allowed to tax services
packaged with access, including music and movies and television over Internet
Protocol, called IPTV. When the moratorium was last debated in Congress in
2004, a group of senators, many of whom are former state government officials,
raised concerns that the Internet tax ban could cost states billions of dollars.
http://www.infoworld.com/article/07/05/23/Internet-tax-ban-meets-resistance-in-Senate_1.html
* Internet Access Tax Moratorium: Revenue Impacts Will Vary by State
[SOURCE: US Government Accountability Office, AUTHOR: James R. White, Director,
Strategic Issues]
GAO testimony at the Senate Commerce Committee hearing. The agency made no
recommendation in the testimony.
http://www.gao.gov/cgi-bin/getrpt?GAO-07-896T
Highlights - http://www.gao.gov/highlights/d07896thigh.pdf
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