Congress Looks To Extend Net Tax Ban Beyond Nov. 1
September 21, 2007 at 11:12 AM (PT)
A compromise to extend the band on state Internet taxes is being patched together to beat the NOV. 1 deadline. ISPs warn that a tax could raise the price of Internet access by as much as 17% should the moratorium on state taxes were allowed to expire.
REUTERS reports that Internet service providers, including telephone and cable companies, favor the bill backed by SEN JOHN McCAIN (R-AZ). the National Governors Assn. supports a bill co-sponnsored by SEN. TOM CARPER (D-DE)(D-DE) and SEN. LAMAR ALEXANDER (R-TN), which would extend the moratorium for four more years -- and include a "grandfather" clause that would allow a handful of states to continue imposing Internet taxes that were enacted before the first Net tax moratorium in 1998.
SENATE Majority Leader HARRY REID (D-NV) and Commerce Committee Chairman DANIEL INOUYE (D-HI) predicted that they would clear the way for a extension of the ban with a compromise between supporters of ban permanent ban that would mollify parties who want the ban to be permanent with those who want it to remain temporary. A similar compromise bill is working its way into the HOUSE.