Ban On Tax For Net Access Up For Renewal


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Established in 1998, the Federal ban on taxes on Internet access is again up for renewal. Without renewal, it will expire on November 1st, opening up a window for state and local authorities to levy taxes on access to the everything from email to twitter.

The ban is almost certain to be extended as it would be politically inconvenient to let it lapse, but the lobbies for states aren't prepared to let the ban become permanent. At issue, they say, is the "thin edge of the wedge" that it represents. How long before it becomes popular to ban taxation of other services?

Clouding the issue further is the murky issue of sales tax on Internet purchases. In these times of overnight delivery, ordering something on line to avoid sales tax and only having to wait a day or two is becoming common practice. State and local authorities are crying foul. Expect to see the two issues intertwined as bills seeking to extend the ban wind their way through the halls of congress.

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