Home > News > House, Senate Consider Renewing Ban on Internet Access Tax • Bookmark   • Newsletters   • Register Search Options


House, Senate Consider Renewing Ban on Internet Access Tax

House, Senate Consider Renewing Ban on Internet Access Tax
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
May 23, 2007 2:30 PM PDT    Text size: 
WASHINGTON — The U.S. House of Representatives began a debate on Tuesday on a law currently restricting state governments from taxing Internet access.

The Internet Tax Freedom Act, passed in 1998, says that local governments generally cannot tax Internet access, including DSL, cable modem and BlackBerry-type wireless transmission services. The law also prohibits governments from taxing items sold online differently from items sold at brick-and-mortar stores. It does not deal with sales taxes on online shopping.

The House Judiciary Committee's Subcommittee on Commercial and Administrative Law held a brief oversight hearing on whether the restriction should be made permanent or allowed to lapse on Nov. 1.

"If we could liken the Internet to a mall, a place where you can go in and purchase goods and services, and also liken it to a library, a place where you can go and pull a book, pull a resource, and obtain some information," Rep. Hank Johnson, D-Ga., said, "Why would we tax a person upon entering a mall or why would we tax a person upon entering the library?

Internet access providers support making the tax ban permanent, and Rep. Anna Eshoo, D-Calif., who represents California's Silicon Valley, introduced the "Permanent Internet Tax Freedom Act" in January. Similar bills have been proposed in the Senate.

State and local governments want to end the tax ban, because extending it would deprive states of revenue indefinitely, and that the original purpose of the tax ban — encouraging use of the Internet — has essentially been accomplished.

"If a moratorium is made permanent, there is a slippery slope where other industries will seek their own preemptions of state laws," David Quam, director of federal relations for the National Governors Association, said.

Quam said that the NGA supports extending the ban in a limited sense and for a defined time period. Reports by government auditors and the University of Tennessee have shown no statistical correlation between levels of broadband penetration and the existence of Internet access taxes, according to Quam.

"Taxes always impact everything else in our economy," Rep. Jim Jordan, R-Ohio, one of 66 House members who co-sponsored the permanent ban proposal, said. "I would assume they've had a major impact in this area as well."

A U.S. Senate committee considered the issue at its own hearing Wednesday.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Cam World: Camming and Toys Go Hand in Hand

There is nothing more satisfying than pleasure, especially if it is sexual. The size or the presentation of the stimulus does not matter if the sensations and tension the body receives transform the way... More »

Cam World: Injecting Personality Into Your Room

Since the last issue of Cam World, I’ve made some significant life changes. I’m working from Colombia now. This was a decision that was not entered into lightly, but change gives you a chance... More »

Fraudulent Brazilian Trademark Registrations Running Rampant

Although you might not think often about protecting your trademark rights in Brazil, you need to — even if you don’t yet have a single Brazilian customer. Scammers are constantly looking for... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.



Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!