Local municipalities and several watchdog organizations nationwide are lobbying
to patch what they claim is a billion-dollar loophole in the proposed Internet
Tax Nondiscrimination Act of 2003.
The act is an amendment to the Internet Tax Freedom Act, which bans taxes
on Internet services.
Municipalities and watchdog groups fear the language of the new act would
free cable and telecommunication companies from paying franchise fees for
the use of the public rights-of-way to install cable or fiber optic systems.
AT&T, Sprint, SBC, MCI, EarthLink and Comcast are some of the major
companies in the area that provide phone, cable and Internet services.
If a company is classified as a telecommunications service, it is subject
to regulation and, therefore, fees. If considered an Internet or information
service, it is pardoned of such regulation under the Internet Tax Freedom
Act. [Cable firm or telecom?]
State governors have the right take on the situation, and an approach that's
good for you and me and them.
The National Governors Association (NGA) Thursday called on Congress to
extend the existing moratorium on Internet access taxes that expires on
Nov. 1, but
cautioned lawmakers from broadening the ban to include telecommunications
services.The U.S. House of Representatives on Sept. 17 passed a bill to make the
current moratorium permanent, and similar legislation in the Senate may
be voted on
as early as next week. Opponents to a permanent ban say the House and
Senate bills make substantive changes to the current law that could eventually
cost states as much as
$9 billion annually in taxes, including eliminating a grandfather clause
that
preserves state and local taxes on Internet access "imposed and actually
enforced prior to October 1, 1998," and an expanded definition of "Internet
access" to prevent states from taxing telecommunications services
used to provide Internet access.
Article comments
1 - Eric Olsen
it is my guess that Hamas will celebrate Yom Kippur, PETA will open a chain of BBQ restaurants, and Britney Spears will be voted into the Rock and Roll Hall of Fame before there in an email tax in the United States
2 - Hal Pawluk
The e-mail tax is just the entry point for the story.
3 - Eric Olsen
and a startling one at that!
4 - Hal Pawluk
Shows the debilitating effects of a few decades in advertising and marketing :-