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Ban on Internet Access Tax Dies in Senate

Justen writes "The Associated Press is reporting (via Yahoo! News) that the bill to permanently ban federal and state taxes on the Internet, via the Internet Tax Freedom Act, has died in the Senate. 'The problem arose over the definition of 'Internet access' -- services that connect consumers to the Internet. The strongest proponents for a permanent ban want to make sure that all access technologies -- from phone lines to DSL to cable modems -- get equal freedom from taxation.'"

19 of 191 comments (clear)

  1. What the Heck? by Anonymous Coward · · Score: 0, Insightful

    They should pass this, seriously. You dont even have to be a rocket scientist to figure this out.

    1. Re:What the Heck? by velo_mike · · Score: 3, Insightful

      They should pass this, seriously. You dont even have to be a rocket scientist to figure this out.

      Ok, first off, I'm opposed to tax in all it's forms - federal, state, property, you name it, I don't want to pay more than I have to. I'll follow that by saying that I'll bitch, moan, kvetch, vote against and otherwise harrass any of my representatives who tried to institute an internet tax.

      All of that said, I don't think the senate has any right to pass this. Why? Doesn't our constitution say something about "The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people". I hate taxes, but I hate the constant increase of federal control into what should be local or state matters even more.

      --

      At the bottom of the endless pile of paper work which characterizes all regulation lies a gun.
      Alan Greenspan

  2. They can't pass up a revenue stream by Anonymous Coward · · Score: 1, Insightful

    Don't worry, they -will- find a way to tax internet commerce. There is too much money to be made.

    1. Re:They can't pass up a revenue stream by leek · · Score: 4, Insightful
      I'd like to see them pass a law, permanent or otherwise, banning certain kinds of state and federal spending.

      Then we'd arguably not need an internet tax.

  3. Packetized Regulation by dmusicstud · · Score: 5, Insightful

    The government is running scared, with the popularity of VoIP. With traditional switched phone systems, the government has all sorts of regulation (read: revenue). With VoIP; however, the regulation has gone away, simply because it is difficult, if not impossible to distinguish voice packets from data packets. Thus, the telcos see an easy route to fall under the radar of regulation.

    Be careful what you wish for - regulation has its ups and downs, but I'm pretty sure I don't opt for NO regulation.

    I realize regulation and taxation are two different entities, but the government doesn't often regulate that which it doesn't also tax.

    So, should this pass? Who I am to say?

    --
    One ring to rule them all, and in the darkness named them...
  4. why a difference between net and non-net goods? by POds · · Score: 5, Insightful

    I know its unpopular, but shouldnt internet shoping and what not be taxed? After all, they are still goods and services.

    We've still gota pay tax to keep kids in school, our roads being repaired etc.

    I think internet goods and services should be taxed, just like any other bloody good or service.

    --


    Giving IE users a taste of their own medicine since 2005 - http://pods.-is-a-geek.net/
    1. Re:why a difference between net and non-net goods? by Slack3r78 · · Score: 3, Insightful

      They are, so long as the buyer and seller are in the same state, which is how I personally feel it should stay. In all honesty, I'd have to wonder whether the collection of local sales taxes from companies with no physical presence in a state would be able to stand on constitutional grounds - it sounds dangerously similar to state/local governments 'interfering with interstate trade' if you ask me.

    2. Re:why a difference between net and non-net goods? by thales · · Score: 3, Insightful

      Questions:
      What services will a government a thousand miles away offer my business in return for the taxes they are attempting to collect? Will California send Road repair crews out of state to fix the roads near my business? Will New York send funds out of state to pay for Teachers in the school district where my business is located?

      If the taxpayers that actually who actually live in areas that need funds for roads and schools don't care enough to pay for them, then why should I care if they have substandard schools and pothole filled roads?

      If a group of people think so little of me that they are willing to tax me without providing any benifit to me in return, why should I care what they have to do without?

      The desire to tax the internet is being driven by deadbeats who don't want to pay for local services they are unwilling to do without, and by sleezy politicans who are pandering to those deadbeats.

      --
      Quemadmodum gladius neminem occidit, occidentis telum est
    3. Re:why a difference between net and non-net goods? by ducomputergeek · · Score: 3, Insightful
      The internet is no different that catalog or mail order shipping. People label the internet "New and must be taxed differently" when really, its just an innovation by placing a catalog online instead of printing them.

      Under mail order tax collection, the rules are: If you do not have offices in other states, you only have to charge customers in the state you operate sales tax. Transactions going to other states are tax free.

      Let's say I sell books and I live in Missouri and I mail a copy to someone in St. Louis, I have to collect state sales tax on that transaction. Let's say I mail a copy to someone else in little rock arkansas, no sales tax because I don't operate out of AR.

      --
      "The problem with socialism is eventually you run out of other people's money" - Thatcher.
  5. "Freedom from taxation"? by heironymouscoward · · Score: 2, Insightful

    Like it or not, taxation is the basis for a stable society. No tax, no government. No government, no authority. No authority, breakdown of civil society.

    Although citizens naturally prefer low-tax regimes, sometimes it's just silly: look at California's budget to see what "low tax at any price" does.

    The internet is so significant, and carries so much trade, that taxation is inevitable and so long as it's sensible and not punitive, why not?

    --
    Ceci n'est pas une signature
    1. Re:"Freedom from taxation"? by ducomputergeek · · Score: 2, Insightful
      Although citizens naturally prefer low-tax regimes, sometimes it's just silly: look at California's budget to see what "low tax at any price" does
      California, and low tax? Isn't that an oxymoron. I mean they have the second highest state income Max bracket in the nation of 9.3% if you make more than $38,000 per year (ie middle class in most other places). SourceTaxadmin.org

      Calforina is in the top 10 of highest state corperate income taxes, and the highest bank income tax in the country at a whopping 10.84%

      Calafornia has the highest state sales tax rate of 7.25% And that doesn't include California's car taxes, properity taxes, and don't forget local sales taxes etc. Also don't forget Federal Social Security, Medicare, and income taxes you have to pay too, or get deducted from your pay check.

      California's budget problems arose from Davis' favors to his campaign donors, the number of social programs, the number of illegal immigrants that tap those social programs, and the general hostility to business on the left coast. Also the downturn in the ecnomy and the fact the dot com bubble was built and bursted.

      I mean what do you want, to pay 70% of your income to the state? And California's policies are low tax?

      Next time know what the hell your talking about. Not all figures from: http://www.taxadmin.org/fta/rate/tax_stru.html

      --
      "The problem with socialism is eventually you run out of other people's money" - Thatcher.
  6. Re:Email by KD5YPT · · Score: 2, Insightful

    I thinkn they would charge the sender, instead of the receiver. It would be like most mail. Sender pays. It might actually reduce spam.

    --
    In US, you can easily buy enough major firearms to wipe out your neighbourhood but a few little fireworks are banned.
  7. Re:Short Sighted decison? by BooRadley · · Score: 4, Insightful
    Either this is a well-crafted troll, you are shilling for something here, or you are just plain stupidly idealistic and shortsighted.

    "Let's make sure that our access to information is metered and doled out in equal portions, so that everyone gets an equal piece of the pie. Also, let's put the government in charge of our access to information, including news, commerce, communications, and education, and trust them to make sure that we get access to what we need and have a constitutional right to view."

    Where do I sign up?

    --

    -- lk t lv ll th vwls t f wrds. T svs lts f tm t wrt bt ts pn n th ss t rd nd mks m lk lk cmplt dpsht.

  8. Such taxation is unconstitutional by BlueCoder · · Score: 5, Insightful

    First of all unless both paries are within the same state it should be clearly untaxable without the explicit concent of congress. It would be interstate commerce. Of course looking at the track record of the supreme court lately...

    One thing I don't get the basis for the state of the customer collecting the tax money. Either congress was bought off sometime in the past or the supreme court messed up. It should be clearly the state the bussiness is in. Although if that were I case I think there might be at least some basis for taxation. Taxation from the customers state is clearly for the political/economic reason that bussiness would move to states with lower or no taxation as should be the case. Of course many of those states have higher income and property taxes to compensate so bussinesses would have to balence many factors.

    The only compromise I can see is if federal goverernment imposed an interstate sales tax and redistributed said money amoung the states. It would be divied equally, by population, by where the purchasers reside or by taxation rates or a combination of many factors. That way it might not be as much money as the states would otherwide get it would but they would get something and bussinesses would have an easier job of bookkeeping and paying those taxes.

  9. They are too busy by toupsie · · Score: 3, Insightful

    Unfortunately, the Senate is having a problem with members of the Senate Intelligence Committee trying to use classified intelligence as political weapons. If Senators had Americans as their priority instead of their seats and their party, we might have some sort of sensible legislation pass in Congress.

    --
    Strange women lying in ponds distributing swords is no basis for a system of government.
  10. So, outside of the US, no TAXES? by NoNine · · Score: 1, Insightful

    How would that be measured. It sounds like a mess to me, and more like a gangsta's paradise (again).

  11. Re:why a difference ... complicated local tax code by G4from128k · · Score: 4, Insightful

    Why a difference? Because some places (like Colorado) have insanely complicated sales tax codes. Where I live, the tax districts include: state, county, city, regional transportation district, cultural facilities district, a special downtown district, and probably some others. Each district's tax depends on the nature of the goods (food, clothing, electronics, services, etc. all have different tax rates in different jurisdictions). The difference is that a local retailer can (with difficulty) figure out their tax liability based on their own address. But what address do you use for an internet retailer when decide which local sales taxes to apply?

    The only solution with internet sales taxes is to use the address of the recipient. And that means that each internet retailer must figure out which of all the overlapping tax districts EVERY customer is in and the calculate the tax on each item based on the type of item and the district's tax structure and then remit them to the appropriate agency.

    Its not as easy as it looks.

    --
    Two wrongs don't make a right, but three lefts do.
  12. Internet Tax: Maybe it's a good idea by SpaceRook · · Score: 2, Insightful

    [devil's advocate]
    An internet tax could be a good idea. There are many technical areas the money could go to:

    1) Improve the government's online services. For example, make it so we can perform more DMV actions on the web instead of waiting 5 hours in line.

    2) Improve the technical capability of libraries. Get some better/quicker search engines for browsing the catalogues.

    3) Fund grants to colleges doing useful research (anti-spam R&D, security, etc...)

    4) Fund the anti-electronic fraud teams in the DOJ.
    [/devil's advocate]

  13. Re:think about it by Salgak1 · · Score: 2, Insightful
    Here's an even BETTER idea. Use federal taxes for only the uses authorized in the Constitution.

    Here's a hint: education isn't one of them, it's a local responsibility. And for that matter, breast cancer research doesn't belong in the Defense Budget either, but it's there. . .

    Lastly, get rid of both tenure and teacher's unions: force teachers and schools to PERFORM if they want a higher paycheck and/or more funding. After all, that's the way it works for the rest of us. . .