RSSHouse Debates Net Tax Ban
By Ed Oswald | Published May 23, 2007, 4:55 PM
At a House hearing in Washington, polticians debated whether or not to renew the ban on taxing net access. Opponents say its original purpose, to spur net usage, has long been accomplished.
Initally passed in 1998 and signed by then President Clinton, the latest renewal is set to expire in November of this year.
Supporters argue that taxing the Internet does not make sense, especially since it has become both an educational resource and commercial entity. Some likened a new tax to charging someone to enter a library or mall.
Both state and local governments see it differently. They say making a ban on taxation permanent could deprive them of a potentially lucrative source of income. Additionally, the ban was put in place to spur the growth of the Internet, which long since has been accomplished.
Despite these protests, it has not stopped lawmakers from introducing legislation that would make the ban permanent.
California Democratic Rep. Anna Eshoo is the latest to introduce such a bill, which is currently making its way through the House. The Senate is also scheduled to hold a hearing on the subject on Wednesday.
As the current law stands, taxation is basically forbidden on dialup or broadband access. There can also not be a different manner of taxation for the Internet as opposed to offline shopping, although states may charge sales tax (and some do).
Many states say they are concerned by an eroding tax base as more consumers opt to shop electronically rather than through brick-and-mortar stores, meaning these government entities would be collecting less tax revenue.
I am a little mystified about this... It seems that the politicians have decided that if they can get it - they deserve it.
They are viewing this as a "potentially lucrative source of income". It's not that the taxes are needed to fund the internet or anything - they just see this as a potential cash cow, and have decided that they are entitled to it.
I don't know what the exact numbers are... but I have heard that we are currently taxed at a MUCH higher rate then they were at the time of the Boston Tea Party.....
Take care,
Rob
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|The Democrats want to tax us *more*?
Oh, say it ain't so!
/sarcasm
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|Umm, I don't mean to burst your bubble, but the article even says a Democratic Rep introduced a bill to make the ban permanent. it is local and state gov't that wants the tax ban lifted there haus.
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Despite these protests, it has not stopped lawmakers from introducing legislation that would make the ban permanent.
California Democratic Rep. Anna Eshoo is the latest to introduce such a bill, which is currently making its way through the House.
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|Read that part wrong. My bad. (Been a tad edgy since the Dems in office in my state started trying to raise our taxes by roughly 4 Billion...which we've since shot down, thankfully)
Oh, and it's Hoss, not haus. (Unless you're trying to call me a house in Deutsch?) :p
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|Fair enough, and thanks for the tip on Hoss. I don't think I've ever tried to spell it out so I wasn't sure what the proper spelling would be :P
Yea, I've been edgy ever since we booted the Republican Bushie we had before, but I'm not convinced that our new Democrat representative isn't just as much of a douche bag.
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|You would pay a certain % as tax on products you purchase within the 50 states. This would be instead of state-tax.
Its like going to Florida where you pay 7% sales tax, but live in a state where your tax is done in a different way.
The tax could also be different from state to state, but most likely you would "pay" the seller's tax in the same sense you pay for the store in flordia's tax on a candy bar.
20th in the world is not that bad, granted it could be better, but we have alot more regions to cover then alot of the other 19 countrys on this said list.
20 out of how many exactly?
If its 50 being in the top 25 I say is really good, clearly we should be #1 because hell we are America everyone wants to be like us.
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|Jesus christ.More taxes and more and more.I love alot about my country but they are gonna tax us until middle to low class people cant even afford a glass of damn water without making sure we check our bottom line.Is oxygen still free?If so you can bet they are working on a way around that.Wow,this society is owned by the almighty dollar.Welcome to the U.S,now give me your wallet b****es!
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|JUST TAX THE LIVING HELL OUT OF US! THANKS FUKERZ
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|Seriously, this is just plain dumb. While internet connectivity may be prevalent for most of us who are on this site, I recently saw a presentation saying the United States is 20th in the world in broadband penetration. This is their answer?
If my congressman does not vote to uphold the ban, he will be losing my vote. Not to mention the fact that if this vote comes up, and is along party lines with Dems in favor, it will give the Republicans firepower for '08 saying "see, they always raise taxes".
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|The politicians answer to everything is tax, tax this tax that, everything is good. I am sick and tired of all this taxing. Didn't a tea party happen because of taxes?
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|At a House hearing in Washington, polticians debated whether or not to renew the ban on taxing net access. that tax is for access not sales. access tax is far different then sales tax.
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|I'd accept a tax on net usage as soon as they lower the price of gas back down to 1.50 a gallon.
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|Then net taxes would be raised to compensate.They are not gonna pass a law to lose themselves money.
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|I can't say how often or not I pay state sales tax when shopping online, but that should be the only tax we pay. I wouldn't want to pay taxes for just using the stupid computer. Plus, if you let them charge a tax, then they would see the open door to raise the tax as they see fit. This should be fought all the way.
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|"Many states say they are concerned by an eroding tax base as more consumers opt to shop electronically rather than through brick-and-mortar stores, meaning these government entities would be collecting less tax revenue."
Am I the only one this doesn't make sense to?
Surely if people are now using the internet more than real shops they're still getting the same amount in tax, just from a different source. The goods bought online are taxed just as much as those bought in a shop.
Granted I don't know how Americans do tax (do you have an equivalent of VAT?) on products.
Please do let me know how they can be losing money.
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|Not every state has sales tax. Beyond that, an out of state company that doesn't have a land presence in a state does not have to collect sales taxes for that state.
Amazon, for instance, is headquartered in Seattle, Washington. Anyone that orders from them in the state of Washington has to pay sales tax. But if you live in California, then you don't.
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|I don't know how it works in other states, but where I live, in Ohio, people are still supposed to pay Ohio taxes on purchases made from other states if that state or local government did not charge taxes on it. It is of course very hard to enforce (on the tax form they just ask how much you owe), but it is still technically collected.
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|First I've heard of that. I've bought stuff online for years and haven't payed taxes. >_>
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|I also live in Ohio and I wish I could just up and move. We are one of the highest taxed states in the country with nothing to show for it. Our state is wasting our money and is going down the toilet. No companies want to move here because of a centuries old tax structure. Way to go Ohio.
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|So how would this tax be implemented? a monthly tax for just having access? Or what?
They wouldn't need so much money if they'd just fire half the people that work for them. A lot do so little they wouldn't be missed if they didn't show up for work.
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|"...meaning these government entities would be collecting less tax revenue."
This is a GOOD thing people! Taxes and the IRS are far beyond out of control.
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|who said United State was a FREE Country ? or is it ?
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