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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.'"

16 of 191 comments (clear)

  1. Bad Name to Blame by Motherfucking+Shit · · Score: 5, Funny

    If they'd just called it the Preserve Access to Telecommunications and Required Infrastructure for Online Transactions (PATRIOT) act, it would have swept through both houses of Congress with little opposition. Haven't our legislators learned anything?!

    --
    "BSD: Free as in speech. Linux: Free as in beer. Windows 10: Free as in herpes." --Man On Pink Corner in #52607549.
    1. Re:Bad Name to Blame by tds67 · · Score: 5, Funny
      If they'd just called it the Preserve Access to Telecommunications and Required Infrastructure for Online Transactions (PATRIOT) act, it would have swept through both houses of Congress with little opposition. Haven't our legislators learned anything?!

      My choice would have been Freedom to Access Required Telecommunications Infrastructure for the Next Generation (FARTING). I'm pretty sure it would have passed and swept through both houses of Congress with little opposition.

  2. 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...
  3. 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 Motherfucking+Shit · · Score: 4, Informative
      I know its unpopular, but shouldnt internet shoping and what not be taxed?
      It already is, just the same as mail-order shopping (I'm posting from a US perspective, by your use of "bloody" I can't tell whether you are or not ;)

      In the US, if you order something from a company which has a physical presence in your own state, you must pay state sales tax. This is true whether the purchase is made in a brick-and-mortar store, online, or via mail order catalog.

      If you order something from a company which does not have a physical presence in your state, you are not required to pay sales tax to either your own home state or to the state of the purchase. In many states, you're supposed to pay a "use tax" or something similar in your home state. In practice, hardly anyone does this except in the case of significant purchases. Very, very few people even know that the "use tax" (or whatever it's called in your state) exists to begin with.

      In any case, that isn't what this bill is about. It's about taxes on internet service, not internet shopping.
      --
      "BSD: Free as in speech. Linux: Free as in beer. Windows 10: Free as in herpes." --Man On Pink Corner in #52607549.
    3. 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
    4. 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.
  4. But of course! by illuminata · · Score: 4, Interesting

    Well, these are taxes that we are talking about here. The only difference between Democrats and Republicans when it comes to taxes is that the Democrats are a bit more public about liking to tax people. They use those funds to support "public services". Yet, both parties use taxes to fund many secret projects that cost Americans countless amounts of money, but most of those you don't hear about on the news. Anyways, that's besides the point. The fact that a bill like this came from the two party system is a shock enough to me.

    Sure, the Act probably was just created to make it look like the folks on Capitol Hill were staying busy. Hell, I've watched SPAN at random and I saw an extremely long debate about how Roberto Clemente should be honored when they should be working. But, doesn't it just piss you off how, even if this was a broad-based ban (and I don't mean broad = woman), that they would still fight over it? Good God, they just won't leave anything alone. It wouldn't fucking kill them to keep taxes away from the internet, period!

    This just goes to show you that Congress has a raging boner to tax you, and it's not one that is going to go down anytime soon.

    --


    Until Slashdot fixes the funny modifier, use insightful or interesting. The poster knows your intentions.
  5. 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

  6. alright i feel silly by segment · · Score: 3, Funny
    all access technologies -- from phone lines to DSL to cable modems -- get equal freedom from taxation.'

    After talking it over with my Cisco 800, it too agress that it needs its own equal freedom and shouldn't pay any taxes because after all (as it told me) it's "only a damn router for crying out loud".

    GET perfidious.org/shadow|perl

  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. 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.
  11. 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.