Democrats reject Republican calls for permanent ban on Internet tax

Posted by Dennis Sellers Apple ico Oct 11, 2007 at 4:33pm

Rejecting Republican calls for a permanent ban on Internet connection taxes, the House Judiciary Committee Oct. 10 voted to extend the current temporary moratorium, which is set to expire Nov. 1, for another four years, not permanently, as some had hoped (as noted by eWeek).

The Internet Tax Fairness Act of 1998 bars state and local governments from taxing broadband connections and imposing other levies and fees that treat Internet commerce differently than brick-and-mortar businesses. Congress renewed the moratorium in 2001 for two years and again in 2004 for three years. In 2004, the House approved a permanent ban on connection taxes, but opposition from state and local governments killed the initiative in the Senate.

Finally, Congress agreed on the current three-year extension. The Senate is also debating whether the ban should be permanent or temporary, with Democrats pushing for another temporary extension.

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Dennis Sellers

Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit.  He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.

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