Congress extends net tax ban, wants sales tax


iconCongress was gracious enough to extend the moratorium on internet access taxes. That means that your high speed internet or dialup bill will remain free of excise taxes and fees; for the time being.

But some lawmakers are crying foul over their inability to seize more of your hard earned dollars.

...some lawmakers said it would require states to raise taxes in other areas to make up for the millions of dollars they would lose as telephone and other services migrate to the Internet.
Such is the typical government response. If you shift your spending from a high tax area to a low tax area, the government is losing money.

Anti-tax lawmakers wanted the tax ban to be permanent, but they were unable to get support and had to settle for a three-year moratorium.

North Carolina Democratic Rep. Mel Watt said he would help Sensenbrenner make the ban permanent in the next session if the Republican would allow states to tax online sales.
Geez, Democrats like Watt never met a tax they didn't like. I bet he'd gladly give up the monthly access fee in exchange for being able to extend their tax arm across state lines to start taxing interstate commerce.



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Ummm.... Online sales are already state sales taxable. You are required to pay sales tax to the seller if you live in the same state as them. If you don't, it is your responsibility to pay your state the tax on the purchase. Its called a "Use" tax and I have to pay it every quarter for purchases I make online in order to protect myself and my business from a state audit. The Use Tax coveres all taxable items that the seller did not collect taxes for.

They're just pissed because no one but business owners pay it because individuals don't think there is any way they can get caught. Unless of course he is proposing that the seller charges tax regardless of the buyer's state. Then is the buyer required to pay twice???

Posted by: Gamrchick at November 22, 2004 4:12 PM

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