Senate Votes for a 4 Year Internet Tax Ban
---The Senate
has voted to restore the internet connection tax ban for another four
years, not quite the permanent ban, which was approved by the House.
-- In 1998, the state and local taxes on the internet connection services
were banned. The ban was ineffective while lawmakers tried to rewrite
it to cover wireless and fast connections, usually called broadband. The
Senate Thursday voted for a new 4 year one 93-3.
---According to Arizona’s John McCain, it is a “pro-consumer,
pro-innovation and pro-technology bill.” The ban did not apply to
local and state taxes on Voice Over Internet Protocol, which allows people
to make phone calls over the internet. States that had already began taxing
internet connections before the 1998 ban are allowed to still collect
taxes on them, but the Senate voted 59-37 to put down a proposal that
would have allowed states to continue taxing DSL connections after the
1998 internet tax ban, which argued that because DSL is delivered through
a phone line could be treated like telephone service. The 17 states with
DSL taxes have 2 years to phase them out.
---Those senators voting against the Senate bill were three Democrats…but
that’s ok.
---This could make DSL internet access cheaper, in turn causing cable
companies to have more competitive pricing and thus, lowering prices for
both services, it could also allow the expansion of high speed internet
access to less populated areas, as it will be more affordable.