Monday, April 26, 2004

Internet Access Tax Ban

From Yahoo! News:
Sen. John McCain is working 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 Friday. 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.

Matt's Chat

I'm 100% behind this ban. However, here is something I hadn't considered before:
The issue divides Senate Republicans, some of whom believe the federal government has no business telling state and local governments how to tax telecommunications.
My response to this argument is that the Internet has greater reach than the local region or state. But then again, so does the telephone. I'm not sure how I feel about that. All I know is is that I am not a fan of Internet taxes. Anywhere. But especially on my bill...

Mark's Remarks


After a late winter/early spring of not impressing me much, Senator McCain has finally got behind something that makes sense. 'We don't need no stinkin' internet taxes.'