States Fight Internet Tax Ban, Cite VoIP Concern

PetiePooo writes "From an article at PCWorld: The Multistate Tax Commission is fighting a bill which makes the moratorium on internet taxes permanent. Their complaint is that it could be interpreted to include VoIP telephony such as Packet8 and Vonage, and they would lose that lucrative tax base as people switch from incumbent providers. The House has already approved the bill. When will the politicians figure out that VoIP is a going to end up as a product, not a service? Voice will be just another form of data. Here's another related article."

Comments

An analogy....

[wowbagger]

Believing that giving more money to the government will reduce deficits is like believing that buying an alcoholic another drink will slake his thirst.

The only real way to solve this problem is to put measureable, non-revokable penalties on government officials who overspend - for example, by saying that Congress shall not be paid, nor accrue retirement benefits, during any year in which the government runs a deficit (and a deficit shall be defined simply as "spending more money than you took in", no more funny accounting tricks).

We must be able to run a deficit during times of crisis (think World War II), but there needs to be a strong disincentive to prevent perpetual crisis.