Senators introduce 'Net tax ban

Three U.S. senators have introduced a bill to permanently extend a ban on taxes unique to the Internet, such as access taxes. Democrat Ron Wyden of Oregon, Republican John McCain of Arizona and Republican John Sununu of New Hampshire introduced the Permanent Internet Tax Freedom Act Thursday, the first day of business for the new U.S. Congress. The bill, in addition to permanently banning taxes on Internet access, would prohibit states from taxing online purchases if they don't also tax catalog or phone-based sales.

If Congress does not extend the ban, consumers could face significant increases in the cost of Internet service, Wyden said in a statement. "Why should a product that's not taxed on the street or taxed in a store be taxed on the Internet?" Wyden said. "It's unfair, anticompetitive and would greatly harm one of the booming sectors of our economy." Congress first passed a temporary ban on taxes that target the Internet in 1998, and has extended the ban twice. The current moratorium expires in November.

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News source: InfoWorld

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9 Comments

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150 years ago, money sent to the government was voluntary. Until a new tax law was passed, it's now a "forced" taxation, which is illegal under the US Consitution. It's still illegal today, to which the current government continues to ignore.

Taxes on the Internet are impossible to collect -the buisness will move elewhere and customers will buy from them.

I certainly don't mind taxes -they support the services most people need and in some cases need to be higher- but you can't tax a medium where anyone can be anywhere.

As much as we'd all like our broadband to be cheaper this isn't necessarily a good thing, the reason places like Sweeden and Hong Kong have much better and cheaper internet access is because it's subsidized by there govermant which in turn is paid for by taxes.

Taxes on the internet really are stupid. Glad to see they're trying to keep it banned.

Taxes are stupid, but it's true that we couldn't live without them LOL

As long as there is money though, there will always be tax. It isn't justified however taxing an online item that wouldn't be taxed in store.

Netrack said,
please explain how we can live w/o taxes

lolll !!! how about 150 years ago, how did they do ? Taxes is illegal by itself and is unconstitutional. I'm ok with the idea to pay only ONE income tax for my country which is really being spent for things like educational or health system. DO you know how much different taxes is existing for every services. They always come up with an excuses of money problem. Yeah right, the problem is the people who is managing it, spending most of it on their "priorities, giving their own private companies contracts to build most of infrastructure and project, and keeping the rest while their private companies revenue also raise. To make believe to the population that the money is lacking, there's an easy way to do it.

2xSilverKnight said,

lolll !!! how about 150 years ago, how did they do ? Taxes is illegal by itself and is unconstitutional. I'm ok with the idea to pay only ONE income tax for my country which is really being spent for things like educational or health system. DO you know how much different taxes is existing for every services. They always come up with an excuses of money problem. Yeah right, the problem is the people who is managing it, spending most of it on their "priorities, giving their own private companies contracts to build most of infrastructure and project, and keeping the rest while their private companies revenue also raise. To make believe to the population that the money is lacking, there's an easy way to do it.

150 years ago they didn't provide the breadth of social services provided today. 150 years ago they most certainly did tax you. Hell, look at the Bible -- there are are tax collectors even back then! While I am not a lawyer (and I don't think you are either), I highly doubt that something every goverment at every level (from municipal to federal) in every country* does would be illegal and/or unconstitutional.

* = I am not aware of any exceptions.