Slashdot Mirror


Senate Mulls Internet Tax Ban - VoIP Exempt?

securitas writes "eWEEK's Caron Carlson reports that this week the U.S. Senate will vote on renewing an Internet tax ban, but voice over IP (VoIP) may be taxed. The bill renews a state/local ban on taxing Internet services like VoIP. The federal government wants to define VoIP as a software application exempt from taxes while most states see it as an alternate form of telephony subject to telecommunications taxes. House and Senate bills that define VoIP as a software application have already been introduced but may not be voted on before the Internet tax vote."

143 comments

  1. Bah by MooCows · · Score: 0, Flamebait

    Bunch of money loving fools :/

    If they need more money, just [increase] tax on internet connections.
    But trying to tax VoIP is just as ridiculous as trying to tax email.

    --
    The path I walk alone is endlessly long.
    30 minutes by bike, 15 by bus.
    1. Re:Bah by Trent05 · · Score: 4, Interesting

      So.. can I spoof my IP address and get my calls billed to my neighbor??

      --


      --
      The Marines: The few, the proud, the not very bright. - Slashdot tagline 04/21/05
    2. Re:Bah by digitalunity · · Score: 4, Insightful

      There was just recently a nice article in Forbes about this very subject. Apparently, the local phone companies are scared shitless because the internet is capable of destroying their stranglehold on the telecommunications market.

      The biggest problem with taxing VoIP is that you only need to pay for VoIP when calling someone who still has POTS. VoIP-to-VoIP calls are free.
      I strongly believe the feds should ban ALL taxes on internet based telecommunications.

      The only good benefit we get from the phone taxes is the emergency services connection. That WILL have to be figured out though.

      --
      You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.
    3. Re:Bah by SquierStrat · · Score: 2, Interesting

      Is it so ridiculous? Attach it like a sales tax. Your SMTP server provider would be the tax collector. They track how many e-mails you send and you get the bill at the end of the month. Every time a spammer sends you an e-mail, they pay for one of your e-mails and that e-mail.

      VoIP (as in the serve ices that are like using telephones) taxation wouldn't be that much different. I don't know much about VoIP but IIRC you need a service provider (I'm not talking about the kind of VoIP you have in games) so just charge a 25 cent a month user-fee.

      I'm not saying I think they should do it. I'm just saying it's not all that ridiculous of a thing to do.

      --
      Derek Greene
    4. Re:Bah by sploo22 · · Score: 1

      And what happens when I mark all your mail to me as spam and get you charged double for it? *evil grin*

      --
      Karma: Segmentation fault (tried to dereference a null post)
    5. Re:Bah by Anonymous Coward · · Score: 0

      Your SMTP server provider would be the tax collector.

      As long as I have IP access, why would I need an "SMTP server provider"?

    6. Re:Bah by SquierStrat · · Score: 1

      Sucks to be me. But then are you going to screw all of your friends like that?

      --
      Derek Greene
    7. Re:Bah by SquierStrat · · Score: 2, Insightful

      *You* don't. Most people use one though because most people have no idea how to set up their own SMTP server. You doing that would be like someone using a private courier rather than the US Postal Service. Make sense?

      --
      Derek Greene
    8. Re:Bah by geek · · Score: 1

      As for the emergency calls, that's rather easy. Just have an encrypted "address card" sent upon connection. If not encrypted then at least signed. This can all be done rather transparently. Of course, what are the chances of that actually working? I'd say slim to none.

    9. Re:Bah by kayen_telva · · Score: 1

      I don't know much about VoIP

      You can talk directly to another person. No service provider is needed.

    10. Re:Bah by 1ucius · · Score: 2, Insightful

      I'm as anti-tax as the next, but even I am not sure if it makes sense to heavily tax POTS and then make VoIP tax free. Taxes on equivalent services should be roughly the same. Otherwise, the government is picking winners in the market.

    11. Re:Bah by cdrguru · · Score: 1
      How about if all taxes are banned and we just pay for everything as it is used?
      • Stop at a stop sign and pay $0.10 for maintenance.
      • Drive on a road and pay $0.001 per mile.
      • Get a traffic ticket and pay $1200 for all of the officials involved.
      • How about paying $5000 for the fire department to put out your house>?li>
      Unfortunately, I think we're in this tax thing because of the the way people find it shifts costs around and makes everyone pay a little bit for stuff. The goal (obviously) is to make the taxes low enough to prevent people from complaining too much but high enough to keep things going. That pretty much means everything is taxed in some way. Lucky that we haven't heard about taxes like:
      • Drunk tax. Pay if you drink too much.
      • Sex tax - with different rates for different stuff.
      • Air tax. Pay for breathing, pay for lighting matches, pay for turning on a gas stove. Makes electric stoves cheaper to use.
      I hear they are looking at some pretty strange taxes in California because they are in a real bind there.
    12. Re:Bah by WindowlessView · · Score: 1

      --> So.. can I spoof my IP address and get my calls billed to my neighbor??

      The goverment is not going to go down this road (of taxing all VoIP traffic) but if they did then, hypothetically, you could cause havoc - which is one more reason they won't go this route.

      I am guessing that the easiest scheme to bill VoIP traffic is to just use the information in the signalling portion of the "call". Almost all VoIP systems use the Session Initiation Protocol (SIP) which, given a financial incentive, should be ridiculously vulnerable to exploitation. It is just a simple text-based protocol which specifies the RTP stream(s) that comprised the call, what kinds of media are involved in the call, etc. Nothing exploitable in there, is there?

      --
      Leave the gun, take the cannolis.
  2. pathetic by parksie · · Score: 3, Insightful

    how are they planning on enforcing this? It's completley pointless.

    1. Re:pathetic by nkh · · Score: 3, Funny

      The new Aprils Fools RFC: Voice Over IP Taxation Bit...

    2. Re:pathetic by fataugie · · Score: 1
      Exactly...

      The only way I could see them levying the tax would be to add a tax onto the software when you buy it, kind of like the video cassette tax back in the 80's.

      How would they know it's a conversation? How would they differentiate between a Powwow chat and a cisco VoIP? How would they know this packet contains VoIP so it should be taxed (by who and how...but that's another matter) and this packet contains Aunt Matilda's Hallmark greeting card?

      I agree with the FP, they are a bunch of money loving bastards and if they could find a way to tax breathing air, they would.

      --

      WTF? Over?

    3. Re:pathetic by SquierStrat · · Score: 2, Insightful

      Of course they would. It's called power. If you control someone's finances you have power over them. That's why your employer can tell you what to do and that's why the founding fathers tried to limit taxation by banning direct taxes.

      --
      Derek Greene
  3. What defines VoIP? by ZaMoose · · Score: 5, Interesting

    For instance, Unreal Tournament 2004 has VoIP functionality built-in in order to facilitate communication between teammates. Might it be subject to taxation?

    What about GAIM's VoIP plugins? Or Gnomemeeting/Netmeeting?

    Are we just talking about apps that mimic a telephone, or are we talking about all VoIP applications?

    I don't trust Congress on these matters. I get the feeling that VoIP will end up being broadly defined and some horror stories resulting from the mess.

    --
    I wish I had a kryptonite cross, because then you could keep Dracula and Superman away.
    1. Re:What defines VoIP? by SquierStrat · · Score: 1

      Stop voting for the people you don't trust and elect people you do trust then.

      --
      Derek Greene
    2. Re:What defines VoIP? by kayen_telva · · Score: 2, Insightful

      They dont exist. Its a "lesser of two evils" situation and has always been. mostly.

    3. Re:What defines VoIP? by tomstdenis · · Score: 1

      What people? Both sides of the fence want to randomly tax things to see how much money they can get [to ultimately commit more warcrimes with poorly educated peeps] while alienating their voting public the least.

      --
      Someday, I'll have a real sig.
    4. Re:What defines VoIP? by SquierStrat · · Score: 1

      Try voting for a third party. You're not throwing your vote away if you do. You're speaking YOUR voice.

      --
      Derek Greene
    5. Re:What defines VoIP? by SquierStrat · · Score: 1

      Try voting for a third party, or how about YOU run? If you distrust them so much, you go do it. Hell, if you'll lower taxes and let freedom abound, I'll vote for you. Come to Georgia and run for Zell Miller's seat.

      --
      Derek Greene
    6. Re:What defines VoIP? by tomstdenis · · Score: 0, Troll

      third party? Liar. CNN tells me what I need to know. There are the democrats [Bush] and Republicans [Kerry]. And that's all there is to it. CNN is NEAT!

      Tom

      --
      Someday, I'll have a real sig.
    7. Re:What defines VoIP? by bwy · · Score: 2, Interesting

      My guess is that if this goes through, their intention is to tax VOIP when it is implemented through a telco. It is hard to tell from these articles that were posted though because aren't written with a lot of technical detail.

      Sure, there are other ways to use VOIP technology, but it is totally nothing compared to the number of people who use the PSTN. My guess is they would like to position themselves to levy taxes as some telcos go from circuit switched technology to packet switched.

      You're probably right though, I think the laws will end up being written so broadly and poorly that nothing will really be exempt.

    8. Re:What defines VoIP? by SquierStrat · · Score: 1

      *cough* Ooookay.

      --
      Derek Greene
    9. Re:What defines VoIP? by jonwil · · Score: 1

      I suspect that the intended defniition of "VOIP" is to cover things which have interconnects to the PSTN and let you contact people on the PSTN (e.g. vonage)

    10. Re:What defines VoIP? by Big_Al_B · · Score: 1

      Okay. Here's the deal: No one is trying to tax your UT, or your *meeting calls. At least not yet.

      Currently, "VoIP" in the government's eyes is carrier-class packet telephony implemented to replace PSTN services for consumers and business. There are companies out there, like mine, who are gaining traction delivering this type of service. Multisite companies love not paying LD charges between LATAs/states...

      This really means PSTN-quality audio, without the regulated tarriffs, origination fees, and termination fees.

      Which makes the telco lobby jumpy--and what makes powerful industry lobbies jumpy eventually makes congress jump.

    11. Re:What defines VoIP? by MinotaurUK · · Score: 2, Insightful
      I think it'd be extremely difficult to achieve consistent taxation across VoIP connections, simply because without a hell of a lot of packet sniffing how do you tell that the traffic is VoIP at all.

      On the other hand, taxing it at the VoIP - PSTN gateway end (bear in mind most current and short-term-future VoIP use will ultimately need to break out onto a PSTN network eventually) would probably be easier to implemnet consistently.

    12. Re:What defines VoIP? by 1ucius · · Score: 1

      That was my guess too. Another administratively simple alternetive is to slap a flat fee on ISP service for 'making VoIP serivce available.'

    13. Re:What defines VoIP? by Anonymous Coward · · Score: 0

      Worked for a third party for a decade and a half. Learned the hard way. The game is rigged. If voting could change the system it would be illegal.

    14. Re:What defines VoIP? by ZaMoose · · Score: 1

      That's all well and good, but I don't trust people in other areas to do the same. I vote for those i trust every time, it's just getting enough other people to agree with me that's the difficult part...

      For instance, I'm trying to help give Snarlin' Arlen Specter the boot from Pennsylvania, but the sniveling PA GOP refuses to actually stand up for supposedly "Republican" principles and is backing one of the most un-Republican senators out there, simply in the name of political expediency and clout.

      --
      I wish I had a kryptonite cross, because then you could keep Dracula and Superman away.
    15. Re:What defines VoIP? by Big_Al_B · · Score: 1

      without a hell of a lot of packet sniffing how do you tell that the traffic is VoIP at all.

      Call data records generated by the call controllers/softswitches. Just because you don't necessarily bill per minute doesn't mean you don't track (log) usage of your network.

      On the other hand, taxing it at the VoIP - PSTN gateway end (bear in mind most current and short-term-future VoIP use will ultimately need to break out onto a PSTN network eventually) would probably be easier to implemnet

      Why? One, that would not track all your VoIP (as you point out); two, you seem to trust PSTN CDRs more than IP CDRs. Again, why? Any record can be altered by dishonest carriers...

  4. don't they understand the word "NO"? by 3seas · · Score: 1

    or are they proposing to use the proceeds to eliminate internet spam?

    tax spam not consumer/user chosen communications... Or do I have to pay tax to say this?

    Free Speech?

    1. Re:don't they understand the word "NO"? by SquierStrat · · Score: 1

      Free speech means you can say whatever you want. The constitution does not guarantee a vehicle to use for that speech.

      I agree about taxing spam. I say tax spam at a rate 2 times the current snail mail postage rate.

      --
      Derek Greene
    2. Re:don't they understand the word "NO"? by kayen_telva · · Score: 0, Flamebait

      at a rate 2 times the current snail mail postage rate

      you will need to to cover the infrastructure costs of such a stupid idea

  5. Go home by t_allardyce · · Score: 0, Flamebait

    Are bullets taxed? im pretty sure bullets should have a heavey tax - say 150%? No? thought not, so dont tax the fucking internet you republican dick-head gun toting rednecks!

    --
    This comment does not represent the views or opinions of the user.
    1. Re:Go home by kayen_telva · · Score: 1

      I must have missed your point. If they tax ALL internet connections with a VoIP tax, where do you go for a "blackmarket" connection ??

    2. Re:Go home by SquierStrat · · Score: 1

      My point was unrelated to the VoIP thing. I just thought his comment about bullets was a little ridiculous. You can tax VoIP without placing said tax over all internet connections.

      --
      Derek Greene
    3. Re:Go home by t_allardyce · · Score: 1

      Actually i was doing my best to troll, and yes VOIP will become a 'black market' because there is just no way to say "oh those encrypted packets over there, the're VOIP traffic lets tax them"

      --
      This comment does not represent the views or opinions of the user.
  6. They might be right by SquierStrat · · Score: 3, Interesting

    I'm not saying what I think they should do. But I'm going to play devil's advocate and say they might have a point. VoIP isn't the internet. It is a service. VoIP isn't necesarilly an international domain thing. It's really not all that different from any other telephone service. It would be like them placing a 1 dollar a month user-fee on ISP's services. Not the same as putting a sales tax on internet goods, or taxing it based on usage, or charging for e-mails. I beleive the term politicians use is "luxury tax." Would no doubt bring in huge revenues.

    Like I said, I'm just playing devil's advocate.

    --
    Derek Greene
    1. Re:They might be right by nkh · · Score: 2, Interesting

      VoIP means "Voice Over IP", and IP means "the Internet".
      VoIP can be coded in a software (which can be Free, as in Free Beer), and that's why it is neither a good, nor a service.

    2. Re:They might be right by cibus · · Score: 3, Insightful

      One has already paied for the bandwidth one uses for VoIP. Thats what differs it so much from normal telephony.
      If some service provider wants to charge for a VoIP service then this provider should be taxed... but for regular "free" services taxing makes no sense.
      Whats next... HTTP taxing??

  7. Skype? by Locky · · Score: 4, Interesting

    Skype is a P2P VoIP application that is independant of any central servers, has great quality audio, NAT, etc.

    How exactly do they intend to regulate the unregulatable?

    1. Re:Skype? by sploo22 · · Score: 1

      Simple. All they have to do is get the IP to monitor the traffic and bill you. This would also make it pretty uneconomical to run a free proxy like they describe, so you can say bye-bye to the firewall traversal feature.

      --
      Karma: Segmentation fault (tried to dereference a null post)
    2. Re:Skype? by kayen_telva · · Score: 1

      tax all internet connections, just like federal taxes on POTS lines. In other words, everybody will pay whether it benefits them or not.

    3. Re:Skype? by sploo22 · · Score: 1

      Oops, I meant ISP not IP.

      --
      Karma: Segmentation fault (tried to dereference a null post)
    4. Re:Skype? by nkh · · Score: 1

      They can't and won't monitor encrypted traffic because cryptography can be done in real time now (a small Diffie-Hellman IIRC and they're fscked), that's why they will bill everyone in the end...

    5. Re:Skype? by sploo22 · · Score: 2, Interesting

      Good point, but if the packets use a predefined protocol they'll still be able to do traffic analysis, even if they can't decode the data. Just scan for the headers and bill people per packet.

      I guess you could get around this by using IPsec, OTOH.

      --
      Karma: Segmentation fault (tried to dereference a null post)
    6. Re:Skype? by WindowlessView · · Score: 3, Insightful

      -->How exactly do they intend to regulate the unregulatable?

      They don't. Even the pols aren't that stupid. What they will end up doing is taxing any applications that interface and crossover to the Public Switched Telephone Network (PSTN). The last time I looked Skype did not do this (and now probably won't ever do so).
      --
      Leave the gun, take the cannolis.
  8. I wonder why by cluge · · Score: 5, Insightful

    Lets see - the large RBOC's and ILEC's have convinced the FCC that UNEP should be killed. God forbid that everyone has access to the infrastructure that your tax dollar helped build. Considering that many of the RBOC's are loosing money on DSL - it makes a lot of sense to not have competition in the area.

    These same people have been working very hard and were able to convince some PSC that rate hikes were in order. [This besides the fact that they had highly profitable quarters even during the economic down turn] Thus stuffing the war chests of the big guys, helping them roll out their "loss leaders" in an effort to crush any competition.

    Now they are agitating for VoIP with no taxes. Why? Simple. They've finally agreed to come to the party. Many companies have been doing VoIP for some time, and the idea that VoIP would be taxed has been held out, but now that the RBOC's and ILECS all have made major VoIP announcements suddenly we're considering legislation! IMAGNINE THAT!

    At VON this year everyone was screaming that the government should take a "hand off approach". This included a rep from the FCC, AT&T legal, california and florida PSD reps. No one wants to "kill the goose that lays the golden egg". From my POV that is ideal. Let us compete and we will crush the inefficient, lazy, technically inept RBOC and ILECS. The problem is that I don't see this hands off approach staying that way. The FCC and california PSC guy hinted that some sort fo universal access fee may be in order. The other thing that was strongly hinted at is that the state's are going to loose a larege source of recouring revenue that they can't afford to loose. so a state tax may be considered.

    In the end, I see VoIP taxes heading the same way as our current PSC and FCC. Favor the big guy (ie campaign contributers), and lets not have too much competition. It wasn't more than 2 years ago when somone said that VoIP will take 2 decades to become mainstream. Sprint, AT&T, Bell South and Verizon will all be switching voice at their cores within 7.

    This bill is a step in the right direction. Lets see if the congress can keep the playing field even. If they do - the RBOC's and ILECs are in trouble unless they make some fundemental changes to their corporate cultures. I bet they will protect their little fiefdoms - look for modified legislation in the next 12-18 months to give them a leg up. (As if their monopoly's weren't enough)

    cluge
    AngryPeopleRule

    --
    "Science is about ego as much as it is about discovery and truth " - I said it, so sue me.
    1. Re:I wonder why by 241comp · · Score: 1

      Lets see - the large RBOC's and ILEC's have convinced the FCC that UNEP should be killed. God forbid that everyone has access to the infrastructure that your tax dollar helped build.

      Not exactly. UNE-P is still around. The problem with it is that the ILEC's are forced to sell service under UNE-P to CLEC's at around 65% of cost. That means for every UNE-P line they sell, it costs them more money to keep up the copper/offices than they got for the line. That leads to less desire to provide it and less quality service. If they even made a little profit (say 5%) then they would want UNE-P.

      Let us compete and we will crush the inefficient, lazy, technically inept RBOC and ILECS.

      Exactly - let VOIP run it's course and if the ILEC's don't adapt then so be it. That's the basis for capitalism.

      Sprint, AT&T, Bell South and Verizon will all be switching voice at their cores within 7.

      This is true except you seem to indicate that because they are using packet switching for voice then they are using VOIP. This is wrong - most of these companies are still staying away from IP because of COS and priority issues. Most use ATM/Sonet or something similar. Yes packet switching - no IP. Sprint is already doing so at dozens of switch sites but it certainly won't be the entire network within 7 years.

  9. Nice try by sploo22 · · Score: 3, Informative

    Erm, yeah... except that's a four-year-old HOAX!

    --
    Karma: Segmentation fault (tried to dereference a null post)
  10. Stop Taxing my electrons... by Anonymous Coward · · Score: 4, Funny

    If they tax our electrons, they should be paid in photons!

    "Enclosed is my tax payment - you will find 1 blue LED and a battery. Turn it on and let it glow. At the end of the battery life my internet taxes will be paid in full, in several billion photons."

    I think you still might be able to pay taxes in live chickens, but
    that would be so unfair to the chickens!

  11. What I would really like for VoIP... by Kjella · · Score: 4, Interesting

    ...is to use the recent short-range band (Bluetooth, WLAN, direct phone-phone connections et al) to turn my cell phone into a landline w/wireless, when in range. That would be a real boon for IP telephony. VoIP with headset or specialized IP-capable phones have their use, but if you could use any cell phone the market would explode.

    Kjella

    --
    Live today, because you never know what tomorrow brings
    1. Re:What I would really like for VoIP... by kayen_telva · · Score: 1

      Awesome point, and in fact, some computer based pbx systems implement something similar. By pluggin a cell phone into a special cradle and the cradle into a port on the pbx, anybody with an extension on the pbx can make outgoing calls on that cell phone.
      The cell phone becomes a "trunk".

      You are right, once things like this become more common the market will explode.
      Plus its just cool as hell.

  12. IP law is not the enemy? by poptones · · Score: 4, Insightful

    All this time we keep focusing on how bad IP law is going to keep us in the technological dark ages compared to our more adaptable evolutionary cousins abroad - but really it's looking more and more like the tax-mad politicians are the true enemies of evolution. It was easy to look at the nonsense going on in India with the government attempting to ban IP telephony and criticise, but it appears our own politicians are determined to prove once and for all India (has) had nothing on us.

    1. Re:IP law is not the enemy? by Anonymous Coward · · Score: 0

      Look man, the US had it's run, and now, like Rome and so many other civilizations before it, the US elite are working on hording all they can while they leave the rest of us to the barbarians...

      They mouth the idea of free trade and then make sure it is inequitable for the common man, unless he is a consumer... but he will be a temporary consumer as his money, job, and future oppurtunities head over seas...

      We WILL accept that we ourselves ARE our worst enemies, and it will be to late for most of us.

      Greed and short sightedness will deliver technologies into the hands of our enemies, our incomes into the hands of our enemies, and indeed our very freedoms of movement and conversation into the hands of enemies.

  13. If they are applications... by crem_d_genes · · Score: 2, Funny

    and the FCC is still in on the act - then will the user licenses have *decency clauses* written into them?

  14. the chaos of law by plnrtrvlr · · Score: 4, Insightful

    You can see all kinds of examples of how, over the years, our lawmakers have tried to govern all kinds of things that they didn't understand. If you want a good example of how the laws governing the internet will look in fifty years, go wander around among the laws governing the environment for a while, or the regulations under which the FDA operates, or anywhere else that the government tries to regulate a scientific or technical issue. These people are lawmakers, not scientists or engineers, and aside from the fact that they simply do not understand what it is they are trying to regulate, they are not really listening to anyone who does understand either. The primary focus of a lawmakers attentions are on their own wallets, followed by those people who see a profit to be made or lost, and lastly by those blocks of voters who might be able to march together under some doomsday banner of dire predictions. I don't want to sound like I'm advocating anarchy, because some degree of regulation is needed on the internet (think child porn or DDoS attacks) but the more we allow the government to regulate, the more confusing and contradictory the regulations will become. Thinking just in this cae, they might tax VoIP now, with half a dozen exceptions to exempt games for instance, only to have to pass new laws later to close loopholes and make new exemptions, until such a time as when a game-maker may need to pay a lawer a weeks worth of wages just so he can safely publish his work. I can only see internet taxes working as an all or nothing deal if we're going to avoid a tax code that would be 10 times as confusing as the most complicated codes we have now. Think some flat (2% maybe?) tax on all goods and services that would be collected by a federal department and redistributed to the states by percentage of what was actually sold in a state. If we just let the lawmakers go according to whim the resulting tax code will choke anyone who wants to do business with or on the internet. Not that I'm fond of the idea of another tax or another governmentl department to administer it.....

  15. Anonymous sources have told me that... by PsiPsiStar · · Score: 4, Funny

    ... this guy gets paid by the acronym.

    --

    ___
    It's the end of my comment as I know it and I feel fine.
    1. Re:Anonymous sources have told me that... by Jeff+DeMaagd · · Score: 1

      Usually I can muddle through jargon and acronyms, but that was a bit much. It's more work than I care to expend to figure out if that post was a joke or legitimate.

  16. Technically, how would this be possible? by zogger · · Score: 4, Interesting

    How could they do this without monitoring all data streams extensively, and determing somehow "gee, this is voice and this isn't", etc. And tracing them to individual IP addresses? Just throw some random numbers at the whole internet? I mean, speech (and video) between people over the net has been around a long time, CUSEEME as an example.

    This sounds more like some sort of random tax that still won't allow what you want to do with your machine, just like the blank CD tax/fees you pay still won't let you completely off the hook with the RIAA MPAA goons and their pet legislation they inspired, even though it was supposed to.

    The only way to keep the net free is just that, no taxes on it for any reason. It's slippery slope, once the government gets a money toe hold on it, eventually it will be highly regulated.

    And speaking of taxes and unnecessary fees, why can't we get unbundled POTS yet? Why do I have to pay all these ridiculous fees I see on my phone bill to use a phone line just for the net? I don't use it for anything but net access. I certainly can't get unbundled copper, no negotiations there as far as I know without jumping through a ton of ridiculous hoops and expense. I guess what I am asking is, why can't I be my own isp with just a pair of copper wires, why do I need all the extra fees and go through someone who has a fat pipe, is there any technical reason they can't throw some switches, etc, and just let me use PPP? Is this an artifical blockade they put on it? I honestly don't know the answer to that, not familiar enough with how it is set up at the local telco or how this is arranged beyond getting an assigned IP and/or domain name and IP. Would it be technically possible to just buy an IP directly, and eliminate a couple of middleman steps? I've never worked at an ISP or anything so I don't know what steps are involved with access and hardware and software and protocols.

    1. Re:Technically, how would this be possible? by Duck2Man · · Score: 1

      With enough money anything technical is possiable. Given the lengths the IRS now goes to for a few dollars tax and many more dollars of penalty, I can envision the H-O-W, High-capacity Online Where-finder. After all it will be your money financing the program.

    2. Re:Technically, how would this be possible? by takev · · Score: 1

      Technically you can start your own internet.
      You just start off with a couple of computers and give them a couple of IP addresses. There are two ways to go about this: completely on your own and just pick some number out of thin air (but you will not be compatible with the current Internet) or get a range from IANA (with IPv6 there are anough to get it straight from the horses mouth).

      Now you connect your neighbour's computers to your own with ethernet and two routers. Now in most countries you may not lay cables above or below the street without the nessesary permits, but we have wifi for that. Now, those neighbours will connect to their neighbours, etc.

      And slowly as more people get connected like this to your internet, without paying a telco a single dime, you will slowly replace the current Internet.

      With the current wifi technology and grid networking getting more mature, this may become the end of telcos.

    3. Re:Technically, how would this be possible? by kayen_telva · · Score: 1

      Why would they get into all that when they can just tax all internet connections equally ? A flat VoIP tax avoids all of that technical crap and gets them what they want. Revenue.

  17. The law of CHAOS by PsiPsiStar · · Score: 1

    ... or imagine no regulation on the internet, and using DDoS attacks to get rid of child porn.

    --

    ___
    It's the end of my comment as I know it and I feel fine.
  18. States like mine in a quandry by adzoox · · Score: 4, Insightful

    So what do states like mine (South Carolina) really want?

    Our govenor says that promoting small business and entrepreneurs is the key while attracting big companies like BMW.

    Yet, taxing VoIP is against the sentiment entirely. I know that telephony (especially on the business side) is a VERY expensive part of my overhead. I plan on switching to Vonage soon. Taxing it would make it less of an advantage vs regular phone service.

    So either our goverments want it easier to for small business to succeed due to the reduction of overhead costs that the internet brings or they don't.

    It goes the same for taxes in general over the internet. Not having to collect and send in sales taxes is HUGE relief of manpower!

    --
    Yell & scream & rant & rave... it's no use... you need a shaaaave ~ Bugs Bunny
    1. Re:States like mine in a quandry by gooberguy · · Score: 2, Insightful

      I think your governor might be lying just so he can get more votes while still receiving donations from larger companies (like the telephone company). Lying ,in general, is pretty common among politicians. They can even lie and stay in office. Look at Nethercutt (a representative from Washington). He promised to stay in office for only three terms, but he was doing such a good job that he ran for office again, and won again. In that case it wasn't really a bad thing since most of the people loved him, but there are many other examples that are much worse.

      --


      Karma: Meh (Mostly from meh.)
    2. Re:States like mine in a quandry by Paulrothrock · · Score: 1

      You still think politicians work for the little guy? You must be new here.

      --
      I'm in the hole of the broadband donut.
  19. Exactly... by Kjella · · Score: 2, Insightful

    *You* don't. Most people use one though because most people have no idea how to set up their own SMTP server. You doing that would be like someone using a private courier rather than the US Postal Service. Make sense?

    ...so when everybody you'd like to hit with this tax (i.e. spammers) would do so, haven't you then simply created a massive, complex system with lots of international tax rules, money transfers and administration for absolutely no gain at all???

    Kjella

    --
    Live today, because you never know what tomorrow brings
    1. Re:Exactly... by SquierStrat · · Score: 1

      Pretty much. But that's the US govt in a nutshell these days.

      --
      Derek Greene
  20. Well... Let's make this simple by Talez · · Score: 2, Insightful

    If it interfaces with the PSTN its a telecommunications medium and should be taxed accordingly because it is a PSTN service.

    If its a point to point connection between two users with no PSTN involvement the baby bells can go jump.

    Fair? I think so.

    1. Re:Well... Let's make this simple by Doppler00 · · Score: 1

      Fair? I think not.

      The phone network shouldn't have been taxed to begin with.

  21. VOIP by maitai · · Score: 2, Informative

    I think people are being to broad with their interpretation of VOIP. When I think of VOIP I think of SIP, H232, Telephony over IP, etc. I don't consider say, Unreal Tournament 2004's voice support as VOIP.

    In that regard, if they want to tax VOIP providers as they do normal telco's I don't have a complaint, I'd assume that'd just be a given. But if they want to try and tax every program that could possibly send speech over the net then I'd be a bit annoyed (to put it lightly)

    I wouldn't consider Skype, Teamspeak, etc as VOIP from my point of view, I think of them as just another chat program. If it can tie into my phone, or someone elses, then it's VOIP.

    My Vonage account has recently had a new $1 tax added to it, so...

  22. IRS Spyware! by Anonymous Coward · · Score: 0


    New Dialog Box on Windows:

    Attention:
    Click here to pay your on-line tax of [$189.47] for 50 GB of music downloads... (PayPal) (Visa) (MasterCard)

  23. "On The Internet" should be irrelevant by frankie · · Score: 3, Insightful
    Why is this so damn difficult for most people to understand?
    1. Commerce "on the internet" should be treated exactly the same way as all other forms of non-local commerce (phone, fax, mail order, etc).
    2. If you think we need a rule #2, please refer to rule #1.
    1. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      The problem with that is how do WE know what commerce you are performing "on the Internet". Though I guess we could put in a "clipper" type chip to find out?

      A packet is a packet, is a packet. What packet are you little boy?

    2. Re:"On The Internet" should be irrelevant by frankie · · Score: 1
      how do WE know what commerce you are performing "on the Internet".

      In case you hadn't noticed, the tax man doesn't have little spy monitors in phone, fax, mail, shopping malls, ice cream trucks, etc, either. We know about the commerce when the money changes hands and the business reports it. It's all the same thing.

    3. Re:"On The Internet" should be irrelevant by 1ucius · · Score: 1

      Definately agree, but another problem is that states need can only tax an entity if they have legal jurisdication over it. Jurisdiction, in turn, generally requires some physical presence in that state. This has been a difficult standard for to meet for internet and catalog-based commerce.

    4. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      But these are hardwired areas. You get taxed on your phone bill because you are using the phone companies line, you are taxed at the mall because you are at the mall and bought something.

      A packet is a packet. Other than using some specific protocol or server there is no way to determine what is the ultimate design for that packet. Unless of course you want your ISP, Government, ectera, ectera to monitor every damn packet you send, where you send it to and what it does.

      The only way they know you bought something on the Internet is that some place registered that you sent such and such amount for such and such item. They don't know it because you sent a POST from a web page. So other than having a specific place that you have to transmit your VoIP to and from, how do they know you are doing VoIP? Especially since money is not necessarily changing hands.

    5. Re:"On The Internet" should be irrelevant by arkanes · · Score: 1

      You're totally correct. Thats why this is a tax on VOIP systems like Vonage that interact with POTS, and they would be taxed at the point where the interact with the normal telephone system.

    6. Re:"On The Internet" should be irrelevant by NineNine · · Score: 1

      The business reports it, plain and simple, just like they do with retail stores. It couldn't be any easier. And the online businesses should just keep track of what state everything goes to. A Net tax is easy, and should absolutely, definitely be enforced.

    7. Re:"On The Internet" should be irrelevant by frankie · · Score: 1

      Either my words are accidentally cryptic (if so, I apologize) or you are woefully misconstruing (if so, you apologize).

      you are taxed at the mall because

      You are taxed at the mall because the shop keeps careful records and provides those records to the state with its tax forms. Shops report tax because they risk fines and loss of license if they don't. There is no magical tax fairy watching over your visit to the mall.

      The only way they know you bought something on the Internet is that some place registered that you sent such and such amount for such and such item

      Well, la dee fuckin' DUH. It works the exact same way for purchase-by-fax, purchase-by-mail, or even ordinary point of sale. I must repeat: THERE IS NO MAGICAL TAX FAIRY.

      how do they know you are doing VoIP? Especially since money is not necessarily changing hands.

      Is someone giving away VOIP phones for free? If so, sign me up.

      VOIP companies collect money the same way POTS companies do: a scheduled billing cycle. If the VOIP uses regular phone numbers and connects interchangeably with POTS (*), then it should be treated exactly the same as any other phone company. Even if a company hires magical phone fairies who grab your words out of the air and carry them to the other phone. If you sell phone service, you're a phone company. Why is this less than blindingly obvious?

      (*) = the inverse should also apply. If your VOIP doesn't use standard phone numbers and/or doesn't connect with POTS, then it's not a phone company.
    8. Re:"On The Internet" should be irrelevant by Anonymous Coward · · Score: 0

      We agree. It's the same problem for any sort of remote purchasing, therefore the same solution should apply.

      -F.

    9. Re:"On The Internet" should be irrelevant by Anonymous Coward · · Score: 0

      I fail to see why everything on earth should be subject to taxation. Why is it I must pay through the nose for everything? I already pay outrageous income tax to fed and state to the tune of 30-40 percent. I pay property tax to fund other kids' schooling even as I struggle to pay off my own. I pay social security and medicare so old fogies can live off me while my health falters. And I already pay rediculous telephony taxes like "universal line charge". And on top of it all with the money I have left I'm forced to pay sales tax on every transaction. I figure those charges alone are already at least half my income.

      Interest earned on what's left is also subject to income tax, and since companies also have to foot the bill for taxes and pass it along in their prices that means the cost of goods is also overinflated across the hierarchy from raw materials to finished product.

      At this point probably more than half of my income is lost to taxes.

      Now tell me why on earth government is entitled to yet more of my money? Haven't they stripped me of enough?

    10. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      What we have here is a failure to communicate.

      I think we are maybe not getting each others point on this. I agree that a VoIP connection can be identified when you are either using a server dedicated to that or a service that is using VoIP. BUT VoIP is only a protocol that runs over TCP/IP just like SMTP and what have you. It is not possible to tell just what exactly you are sending from one Internet location to another. A packet is a packet. You can only tell what kind of packet it is when you start putting the packets together. I can sniff ports and tell you that if it is going to port 21 it is probaly an FTP session, but I don't know that for certain. Port 21 and FTP are tied together by convention. I could send email over that port and as long as the server is expection SMTP instead of FTP then it is going to translate it just fine.

      VoIP companies collect money because they are providing a service, in most cases tools and a server that is dedicated to the task. So, yea they are points of service that can be taxed, but if I set up a direct connection from one IP address to another you cannot tell me if I am using VoIP or SMTP or some strange protocol designed by joe smoe.

      So other then when you are hitting the POTS line again, when can you tell you are using VoIP.

    11. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      You expect every company large and small to keep records on how many goods were sent to what state and for how much? and then send them a check based on the tax rate of that state. Though to be perfectly honest it should be based on the county as well since most sales tax has a county component as well.

      So, instead of having to only keep a record of how much I sold and sending in a check on the sales tax on that you want me to keep 50 times that much accounting.

    12. Re:"On The Internet" should be irrelevant by frankie · · Score: 1
      if I set up a direct connection from one IP address to another you cannot tell if I am using VoIP or SMTP or some strange protocol

      If you have a personal connection that you aren't selling to others, business law is irrelevant in that case. Is that your point?

      Or are you saying that regulators have no way to track VOIP usage directly? Those same regulators have no way to track POTS or wireless usage either. The phone companies self-report because auditors and peers will catch them if they lie.

      Online or offline, if businesses have the same basic structure, then business law should do the same.

    13. Re:"On The Internet" should be irrelevant by NineNine · · Score: 1

      So, instead of having to only keep a record of how much I sold and sending in a check on the sales tax on that you want me to keep 50 times that much accounting.

      Absolutely.

      Already, Internet based stores have such an incredibly low overhead, and they have such a profound on brick & mortar stores that actually do contribute to the community and local government, I think that this is a very small thing to ask for. Hell, it's all computerized already, so it's not that tough to do.

    14. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      I understand you point about regulating POTS and phone companies and other such. Because I know what they are delivering and they are delivering a specific service. I know that they are delivering a line to my house and that line may be set up to run DSL, POTS or what have you. But they don't know and cannot tell if I am speaking russian over the phone or I am sending a fax. Not without tapping the line and listening in. This is why you are not charged for using the phone for sending a fax differently from using the phone to make a voice call.

      The same is true with TCP/IP or V/IP or any other "protocol" that is being sent over the 'Net. It is like deciding whether or not I am speaking russian or klingon. If you are going to tax VoIP then you will need some way to identify that it is VoIP and for how long. But that is like trying to track how long I was speaking klingon and not russian.

      I am not saying that this sort of thing is not going to be taxed, I am just saying that when you start trying to identify what protocol is to be taxed and what isn't is like trying to grab jello, it will slip through your fingers. If we talk about VoIP what are we talking about, are we talking about that particular protocol or are we talking about translating voice over an internet connection? If so does streaming audio fall under the category of VoIP? and should that be taxed? How will the ISP and the goverment identify what is going over their TCP/IP connections without tapping?

    15. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1

      You obviously have never tried to run a business.

    16. Re:"On The Internet" should be irrelevant by frankie · · Score: 1
      Ah, now I see. I was focusing on the narrow category of IP telephony, connected to the regular phone system. You're right that VOIP is a large term whose meaning is still evolving. Sorry for the confusion.

      IMO, if doesn't connect to POTS (in particular, if it can't be used to call 911) it's just multimedia instant messaging.

    17. Re:"On The Internet" should be irrelevant by NineNine · · Score: 1

      You obviously have never tried to run a business.


      +5 Funny.

      I own several successful brick & mortal retail stores, along with a new Net based store.

    18. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1

      But if it does connect to POTS who gets the bill?

    19. Re:"On The Internet" should be irrelevant by theAmazing10.t · · Score: 1
      Then you are perfectly ready to organize all of your accounts by where they were transacted and then deal with all of the different rates that each state and/or locality is wanting you to submit your accounts in?

      You have the software to parse all of those transactions and follow the rules as defined by each of those states? Do you even know what the rules are in each of those states?

    20. Re:"On The Internet" should be irrelevant by Doppler00 · · Score: 1

      All other forms of non-local commerce are tax free anyway. There is no national sales tax, so why should there be a tax on anything related to the internet? We are already heavily taxed on our income, why do they keep increasing the burden?

    21. Re:"On The Internet" should be irrelevant by Anonymous Coward · · Score: 0
      Hell, it's all computerized already, so it's not that tough to do.


      It amazes me how people who know little to nothing about computers are so eager to talk out of their ass about how easy something is to implement.
    22. Re:"On The Internet" should be irrelevant by NineNine · · Score: 1


      It amazes me how people who know little to nothing about computers are so eager to talk out of their ass about how easy something is to implement.


      select billing_state, sum(sale_price) from tbl_sales where date_sold '2/1/2004' group by billing_state

      Oooh, that was hard, huh? Jackass.

    23. Re:"On The Internet" should be irrelevant by Anonymous Coward · · Score: 0

      Whoever gets the same bill for a POTS line. Whether that's the end user, the provider, or the estate of Alex Bell, I dunno.

  24. Hmm? Taxing a particular kind of software? by Famatra · · Score: 1

    "House and Senate bills that define VoIP as a software application have already been introduced but may not be voted on before the Internet tax vote."

    I wonder how they will collect the tax on an open source / free software version of a VoIP application?

    15% of $0.00? Here's your 'tax' Mr./Ms. senator ;).

    I'm not sure if tax on a particular kind of software has ever been done before? I don't think it will work out that great in this case.

  25. A Moving Target by theAmazing10.t · · Score: 1
    The Gov. needs to stop chasing shadows when it comes to the Internet. Just because an application or Web product provides the same function as something else does not make it that something else.

    Taxes are used by the government to level a playing field, reduce the impact or reduce the desirablity of something. Liquor and cigarettes are heavly taxed to help pay for the gov. services used because of those products and to reduce their desirablity.

    With the Internet you have a slightly different problem. The gov wants you to be using it, for a number of reasons. But they also see it as a revenue generator for them or at least a place that revenue can be lost because of switching from other revenue generators. I.e.. sales tax and now communication taxes. But the problem is they don't understand what the Internet is, so they keep arguing about whether or not to tax this part of it, or some other part of it. But this is sheer stupidity. The 'Net has yet to fully define itself. It keeps on morphing every day into some differnet functionality. Who would have thought when the 'Web came into being, in the 80's that it would be used to affect the music industry.

    The only thing certain in this life is death and taxes. The Internet or portions of the Internet are going to get taxed, but how is the big problem.

    1. Re:A Moving Target by DragonTHC · · Score: 2, Insightful

      we pay communication taxes on the internet service!
      and on my phone line which my DSL is on.

      I pay about $20 a month just in taxes for my phone+DSL.

      taxing VOIP is ridiculous since you're still paying taxes on the internet service.

      as for sales tax on the web, we're still dodging that bullet.

      adding it would seriously decrease website revenues.

      --
      They're using their grammar skills there.
    2. Re:A Moving Target by gaijin99 · · Score: 1
      I doubt that the government is the origin of the desire to tax VoIP. Think carefully now, what industry with billions to buy politicians with would *really* like high taxes on VoIP? The telephone companies maybe? Gee.....

      This is simply the telephone companies seeing a new and competing technology arising and then doing its best to strangle that new technology. The government is, in this case, nothing more or less than the hired thug of the phone company. Watch carefully as various congresspeople who have, in a completely unrelated event, recieved large "contributions" from the phone companies manage to sneak in various provisions so that the VoIP tax actually exceeds the tax paid on normal phone service.

      Money is not speach, and corporations are not people. But until the bulk of Americans agree with that obvious truth we will continue to see corporate "people" using huge wads of cash to "speak" to politicians and buy special taxes to kill competition (as well as special tax breaks for themselves). Which is why some people are so shrill about insisting that money is speah.

      --
      "Mission Accomplished" -- George W. Bush May 1, 2003
    3. Re:A Moving Target by theAmazing10.t · · Score: 1
      I agree with your point on this.

      Please take my originaly thought "A Moving Target" and change the word goverment for corporation. It should read better.

    4. Re:A Moving Target by gaijin99 · · Score: 1
      On review, my post looked more than a bit rantish. I wasn't ranting at you, I was just ranting in general.

      --
      "Mission Accomplished" -- George W. Bush May 1, 2003
  26. SBC sues ATT over VoIP by stecoop · · Score: 1

    In a related story SBC is suing ATT for avoiding fees associated with VoIP call transportation. Apparently SBC doesn't mind VoIP as long as they get paid for using their infrastructure or is it that SBC sees VoIP as a threat to their LD and Local services?

    Here is the full article for those of you too tired to click through:

    SBC Sues AT&T Over Internet Phone Fees
    Fri Apr 23, 4:56 PM ET

    WASHINGTON (Reuters) - SBC Communications Inc., (NYSE:SBC) the second-largest U.S. local phone company, has sued long-distance giant AT&T Corp. (NYSE:T) claiming it avoided paying at least $141 million in connection fees for calls carried partly over the Internet.

    The lawsuit by SBC, filed in a St. Louis federal court on Thursday, follows a ruling by federal regulators a day earlier that AT&T was improperly deeming long-distance calls it carried over the Internet as local calls and paying local phone companies lower fees than normal.

    SBC "seeks not only to recover the exchange access charges that AT&T has unlawfully avoided -- which SBC estimates to be at least $141 million and possibly much more -- but also to enjoin AT&T from perpetuating its unlawful conduct," the lawsuit said.

    An AT&T spokeswoman said the company did not comment on pending lawsuits, but that it would defend its case vigorously.

    The decision by the Federal Communications Commission was seen as a win for local phone companies like SBC, as the FCC rejected AT&T's argument that calls that travel even partially over the Internet are not subject to higher FCC-mandated access charges.

    AT&T criticized the FCC's ruling when it was released, and told analysts on Thursday that it did not expect to have to pay back charges from the ruling. It also said additional costs from the ruling would be less than $100 million a year, compared with the $9 billion a year it usually pays local phone companies for connection charges.

    The FCC sought to distinguish AT&T's tactic from other Internet phone services, based on technology known as voice over Internet protocol, or VOIP. Those services offer phone calls over high-speed Internet connections, at a far lower cost than traditional phone service.

    AT&T's strategy converts traditional phone calls to data so they can be carried on its Internet backbone, and was not noticeable to consumers

  27. VOIP companies will move overseas by mmerlin · · Score: 1

    If VOIP starts being taxed in the USA, I predict VOIP companies will move their operations overseas.

    Joe Consumer and his buddies in the USA will then download their VOIP software from Europe, Asia, Australia, and route their calls through VOIP servers located overseas.

    Wouldn't this make it a bit more difficult for the USA to impose a tax on VOIP?

    --

    smile, it makes everyone else wonder what you're up to :-)
    1. Re:VOIP companies will move overseas by cdrguru · · Score: 1
      I think the problem is right now the PSTN companies have figured out a way to bypass long distance charges for long distance calls. They use VoIP to move the call from one area to another. It has nothing to do with individual use of VoIP, it has everything to do with Sprint switching voice calls over the Internet rather than a line leased from MCI. The line leased from MCI is taxed, regulated and metered. The Internet isn't.

      It is also important to understand that local phone service is cheap because of long distance phone service being charged as it is. If you destroy long distance charges (as VoIP currently being used would do), the facilities are going to have to be paid for somehow. Right now, we don't see it because of cost shifting.

      This is all about finding a loophole and getting something for nothing. They want to close the loophole. I don't see any other way to resolve this without restructuring all wired communications in the US.

  28. Doesn't work for mobile. by Ungrounded+Lightning · · Score: 1

    As for the emergency calls, that's rather easy. Just have an encrypted "address card" sent upon connection. If not encrypted then at least signed.

    And when you're using your laptop on the road and call 911, they should go to your home or office? No, I don't think so.

    Ditto if you're at home but happen to be VPNing in to work - and the emergency services go to your work.

    And then there's Joe Random User. Requiring him to set up an address as part of his internet install (or even his internet phone install) complicates the process. So many of them won't set it up. And others will set it up wrong - and not find out until they call for an ambulance and it doesn't come. And others will be suspicious that they're buying into a "caller ID" that might give out their ADDRESS to people they call. Or to people who call THEM. Even if it doesn't.

    And it also puts your physical address on the machine in a well-known place. How long until some stalker cracks his target's machine and comes for her? Or the latest spammer worm carries an additional payload that creates a mailing address database for the spammer - LOTS of bucks in selling THAT one.

    Sorry, I don't think that dog hunts.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:Doesn't work for mobile. by geek · · Score: 1

      It doesn't work on mobile right now so your spinning your wheels arguing against it. Some phones and some locations may work, but the vast majority does not.

      You can also drop the condescending attitude. You aren't holier than thou.

    2. Re:Doesn't work for mobile. by Ungrounded+Lightning · · Score: 1

      It doesn't work on mobile right now so your spinning your wheels arguing against it.

      Yes, it doesn't work that way. But the government will probably be trying to force it to work SOME way. And they can mandate all sorts of stuff and force the ISPs to implement it - and to pass the charge on to the consumers.

      Personally I think any network-based location identifier is a bad idea - because it directly attacks anonymity. But governments would LOVE to identify who and where each Internet user of interest to them happens to be. So don't be surprised if they use VoIP 911 service, and the arguments I posted previously, (plus the threat of terrorism) as an excuse to force ISPs to provide address data - and not just on VoIP connections.

      You can also drop the condescending attitude. You aren't holier than thou.

      Didn't mean to sound that way. Sorry. I was just trying to list the factors I see as applicable to the issue.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  29. Explanation of Acronyms by PetoskeyGuy · · Score: 1

    That was a confusing post. Here are the acronyms in the order they were presented. Now if someone would just say what they mean in this context. I found several possibilities for some of them.

    RBOC: Regional Bell Operating Company
    ILEC: Incumbent Local Exchange Carriers
    FCC: Federal Communications Commission
    UNEP: United Nations Environment Programme??
    DSL: Digital Subscriber Line
    PSC: ??
    VoIP: Voice of IP - Internet Phone calls
    VON: Voice Over Net coallition
    PSD: ??
    POV: Point of View

    Hopefully someone can tell me if I've got those terms right and what the missing ones stand for. If not I guess I'm SOL. ;)

    1. Re:Explanation of Acronyms by WindowlessView · · Score: 1

      -->UNEP: United Nations Environment Programme??

      I think this was meant to be UNE-P - Unbundled Network Element Platform, basically where CLECs (Competitive Local Exchange Carriers) must be able to rent equipment from ILECS.

      -->PSC: ??

      Public Service Commission

      -->PSD: ??

      Prevention of Significant Deterioration? I think this might be an EPA/state environmental entity?

      --
      Leave the gun, take the cannolis.
  30. Interstate Vs Intrastate Commerce by Baldrson · · Score: 1, Informative
    As long as internet traffic is intrastate, the federal government has no authority, under currently enforced court interpretations of the Constitution, to ban an internet tax.

    The original article starts:

    The U.S. Senate is slated to vote this week whether or not to renew a ban that keeps state and local governments from taxing Internet access.

    This is a violation of the interstate commerce clause of the US Constitution which grants the Federal government only the power:

    To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;
    The 14th Amendment, which many have attempted to extend to totally eliminate all state soveriegnty, has, for example, been interpreted not even to protect basic enumerated rights. An example is, the right kee and to bear arms with military utility. The federal courts have ruled States have a right to violate this enumerated right because the bill of rights doesn't fall under any of the enumerated powers of the Constitution, nor does it fall under any of the specifically mentioned rights to be protected under the 14th Amendment. See Quilici v. Village of Morton Grove, 695 F. 2d 261 (7th Cir. 1982), cert. denied, 464 U.S. 863 (1983).

    1. Re:Interstate Vs Intrastate Commerce by simishag · · Score: 1
      Thanks for clouding the issue with a completely unrelated case. Internet traffic will NEVER be viewed as originating and terminating completely in a single state. "The Internet", as we know it, is an interstate communications medium. It relies on a multitude of networks, most of which transit multiple states. It therefore CAN be regulated by the federal government, through the FCC. If you are suggesting the FCC is somehow unconstitutional... well, have fun with that.

      Perhaps you're suggesting that the FCC doesn't have the right to regulate private, in-state networks. You might be right, but no one in their right mind would consider such private networks to be "the Internet." You might also say that states can regulate the intrastate portion of Internet traffic, as they do with intrastate phone calls. However, if ANY portion of the traffic is interstate, it can be regulated by the FCC.

      I have a pretty good feeling that you will contact at least 1 DNS/Web/email/whatever server that is outside your state every time you use the Internet. And even if you don't, I have no doubt that any "Internet" provider will make sure it is located in multiple states, so that it can be regulated under federal law rather than have to deal with a patchwork of state regulations.

  31. And in this case encryption doesn't help. by Ungrounded+Lightning · · Score: 1

    Just have an encrypted "address card" sent upon connection.

    Encryption doesn't give any security, since the DEcryption routine and key has to be present in every set of 911 support software in the country. Only a matter of time until that's compromised. (Not to mention that the need to keep it secret creates a barrier against authors of open-source 911 software authors.)

    Better would be a "send address" function at the user's option. But that doesn't solve the problems with mobile and VPN users I mentioned previously.

    So the address has to come from the network and the VoIP bridging service.

    Getting it from the network carries risks of its own. In principle it could be accessed by governments and used to find the address of ANY connection, destroying anonymity. Imagine its use by a totalitarian government hunting down readers of "forbidden" information and contributors to a dissident blog.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  32. They still own all the cards...for now. by Famatra · · Score: 2, Interesting

    "Apparently, the local phone companies are scared shitless because the internet is capable of destroying their stranglehold on the telecommunications market."

    The phone companies might hurt for the short run, but they still seem to own the vast majority of the connections on which the internet (and thus VoIP) ultimately operate.

    People creating their own interconnected wireless internet networks will probably hurt them more in the long run. Get a large enough tower you can transmit to people like a pirate TV or radio station.

  33. Isn't it already taxed? by no_such_user · · Score: 2, Interesting

    Because it'd be near impossible to meter, it's unreasonable to expect VOIP-to-VOIP traffic to be regulated and taxed. However, VOIP which peers with the PSTN (i.e. the phone company) is a much easier target. But aren't taxes already being collected here? For each phone number assigned to a VOIP device, the party providing you with service (i.e. voice ISP, such as Vonage) needs to get a PRI or similar hookup to the phone system. Doesn't that get taxed? And what about sales tax? An argument could be made that wherever the VOIP provider has POPs, they could charge sales tax. And don't I already pay taxes to my ISP for my internet connection?

    I'm not against taxes - I'm against excessive, stupid taxes. Like paying an E911 tax, only to find out that the money collected is going towards office supplies, dry cleaning, cars, etc. Or paying over 20% tax on my cell phone service.

  34. The Supreme Court said it best by ShatteredDream · · Score: 1

    When they ruled against Maryland saying that a state cannot tax a federal agency because..... (and it applys to everything) "the power to tax is the power to destroy."

  35. The States See Another Cash-Cow Disappearing by ZPO · · Score: 3, Insightful

    The key can be found in the article...
    --
    "It's the threat and the possibility that all of these services could migrate to the Internet," said Alexander's aide. "As services migrate to the Internet, you could bundle these services, and the telecom taxes that states currently collect they could no longer collect." -- Sen. Lamar Alexander (R-TN)
    --

    This is simply about the states being afraid of losing a very lucrative revenue source. The thought behind it has nothing to do with with the implementation, the technical reasons for VoIP deployment, or even whether its a Bad Idea (TM) or not. Its all about maintaining tax revenue for the state.

    There are legions of accoutants, lawyers, and beauracrats in every state (hell, in every level of government) looking for things that might be taxed to generate revenue. It has nothing to do with whether the tax is smart, appropriate, or germane. Its about finding sources of revenue to support state spending.

  36. Maybe they'll settle on taxing PSTN bridging. by Ungrounded+Lightning · · Score: 2, Insightful

    Are we just talking about apps that mimic a telephone, or are we talking about all VoIP applications?

    The sane thing to do would be to tax subscription VoIP/PSTN bridging. (PSTN = Public Switched Telephone Network.)

    VoIP computer-to-computer connection is just another IP application. It lets you communicate with another computer user - but so does just about EVERY OTHER application on the Internet. (VoIP just happens to transmit voice, rather than the text streams of chat and IM, the compositions of email/blogs/web pages, the reference information of DNS, the "computer-as-person conversations" of telnet/rlogin/ssh, and so on.)

    PSTN bridging creates a connection to the legacy telephone network, completing the emulation of the formaer service. You can use the "pay phone" model of outgoing calls only or the "customer line" model of a subscription that accepts PSTN calls to an assigned phone number. While it does have an Internet component, there's no question that it also has a PSTN component. It's also pretty clear that the PSTN component is the dominant functionality and the Internet component is just a new kind of "phone line" transport between the PSTN to the user.

    So a logical thing to do would be to apply the tax to VoIP/PSTN bridging. This would leave pure IP applications untaxed, including computer-to-computer VoIP calls. And it would answer the fairness objections from the telephone companies.

    = = = =

    Alternatively, now might be a good time to review the tax structure on telephone service.

    The tax to support the 911 service got hung on them as a convenient place to put it. The service was only available to telephone subscribers, so there was SOME fairness in that. But these days practically EVERYONE is a telephone subscriber, so fair allocation of the cost is not as much of an issue. And 911 is REALLY part of the dispatch functions of the emergency services (a convenience to replace fire/police callboxes and separate phone numbers for each service). It's not a necessary function of the telephone network. In fact, it's an expensive service provided BY the telephone network TO the emergency services. Shouldn't it be paid for out of the budgets of the services, rather than by a tax on phones (whose collection is ALSO a drain on the phone companies)?

    Similarly, the rest of the taxes on phones are either related to specific telephone issues (funding regulatory boards, funds transfer between long-distance and local cariers related to the monopoly breakup, buying equipment for phone number portability) or yet another hidden government money grab on the consumer's pocket book for "public purposes" ("universal" and "lifeline" service subsidies, federal and local taxes). It's clearly appropriate to charge the phone-company specific fees to the phone company customers (and to VoIP/PSTN bridging customers SOLELY to the extent that they fund a function used by the bridgers as well). As for the rest: since the government isn't going to tax the Internet, it should take those taxes off the phone companies, too.

    If the government wants to subsidize phone service for the poor, roll it into the welfare system (rather than soaking the other phone customers just because there's some mental resonance). If the government just wants to suck money out of the pockets of the citizens, lump it in with the other general taxes.

    As for "universal service", why should the people in the cities pay for phones for people in the country? People in the cities moved there, and pay MUCH higher living costs, in order to be in closer communication with other people. If somebody in the boonies wants a wire strung 50 miles to get a benefit of city living in his lower-cost country location, let him pay for it. (Or get a cell phone and a cradle, and maybe a high-gain directional antenna, if he's within some services' coverage area.) There's no "Internet universal service" - and the government is trying to DEregulate local phone service and allow othe

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  37. You got that backwards again. by Ungrounded+Lightning · · Score: 1

    Are bullets taxed? im pretty sure bullets should have a heavey tax - say 150%? No? thought not, so dont tax the fucking internet you republican dick-head gun toting rednecks!

    Last time I looked it was the Republicans that were trying to keep the taxes off the Internet (free market, create wealth, etc.) and the Democrats that were thirsting for another source of tax money.

    = = = =

    But of course the lefties are ALWAYS accusing their opposition of their own sins. It serves as a preemptive strike (so somebody who later points out the lefties' misbehavior looks like a "No, HE did it!" playground finger-pointer). And they place no value on honesty: Winning the argument with a lie is considered "intelligent" rather than "reprehensible". (I'd have said "dishonest" - but then lefties wouldn't understand that I meant something bad. B-) )

    As for "Rednecks": Apparently, despite all their other rhetoric, lefites think racial and ethnic slurs are fair game if directed at the rural working class. (And I bet he either doesn't know or care that the term includes a reference to the assimilated indians and part-indians that form a significant component of it.)

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:You got that backwards again. by realdpk · · Score: 1

      You're right, it must have been the democrats seeking to pay $87B for a "pre-emptive" strike against a nation not even close to being ready to attack us.

    2. Re:You got that backwards again. by Anonymous Coward · · Score: 0

      But of course the lefties are ALWAYS accusing their opposition of their own sins.

      And Republicans don't?

    3. Re:You got that backwards again. by Ungrounded+Lightning · · Score: 1, Offtopic

      But of course the lefties are ALWAYS accusing their opposition of their own sins.

      And Republicans don't?


      Usually not, actually.

      The two parties attract two different types of compensated psychopaths. The Republicans attract the rule-bound, while the Democrats attract the anything-you-can-get-away-with. ("Politics is the Art of the Possible." -LBJ) This means the Republicans get the compulsive truth-tellers and the Democrats get the pathological liars.

      Not all in either party are such, of course, but psychopaths ARE vastly overrepresented in politics. But the non-psychopaths of each party tend to have personal ethics similar to the psychopaths - which is why the two different styles are attracted to the two parties.

      This is not to say there aren't other problems than compulsive lying with a rule-bound compensated psychopath, of course. (For starters, if you don't play EXACTLY by HIS particular set of rules, you suddenly find yourself on his scumbag list. Expect to be treated like a crook, terrorist, or trator.)

      Understanding this is key to understanding the politics of the two major parties. Their members really DO think and act differently. And the members and/or supporters of each tend to become very confused when they expect the other sides' people to act like their own.

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  38. proly because.... by zogger · · Score: 1

    ...of useage rates. Too many people would complain (righteously) that like the road fuel tax,or your electric bill, or water bill, etc, it should be pay as you use it, which means transfer rate metering of some sort, not a flat rate. I know besides thinking the whole idea is dumb,and I don't want to see it,that IF it was implemented and that if I got charged on my 28.8 connection the same as someone with a cable connection or T-1, etc, that it wouldn't be even remotely fair. IF they want a flat rate,and run the net as some sort of taxed public utility, then bring me decent broadband at the same prices that are charged in areas with several kinds and competition, then it would make more sense and be folloiwng the model we have established for utility service in general already in other areas..

  39. Pointer to an article on India VoIP ban proposals? by Ungrounded+Lightning · · Score: 1

    It was easy to look at the nonsense going on in India with the government attempting to ban IP telephony [...]

    That's the first I've heard of that. (And it's important to me.)

    Do you have a pointer to any articles on it?

    thanks

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  40. What ? by z0ink · · Score: 1

    I thought the government has to first be involved in something before they tax it. The gov't doesn't own any part of the internet, so what is it that allows them to consider taxing it? I use VoIP (Ventrilo) to communite with my team mates during an online game or just for chatting. If I wanted to write some interface to use a VoIP enabled phone with that, would THAT then be elligable for taxation? Taxing the internet is rediculous. I'll be glad to leave the terrible service of my regional baby bell.

    --
    Steal This Sig
  41. Home Brew Internet by WindowlessView · · Score: 1

    --> Technically you can start your own internet.

    I have thought of things along this line too. Talk about the ultimate Open Source Project - hey kids, let's reinvent the internet but eliminate the mistakes!

    A primary design requirement of the current internet was that it should survive a nuclear attack, presumably from another country. The new internet should be designed with the (additional) requirement that it survive financial and civil liberty attacks from our own governments.

    People forget (or are too young to remember) that we got by on primative BBS systems for quite awhile and people were reasonably content. A home brew internet is potentially far more interesting and useful than the bulletin boards ever were.

    I can imagine a bifurcated world where we have the (commercial) internet as we know it today and an alternative internet akin to what it was before the 1990s corporate takeover. Only the latter will be build with privacy and anonymity features built right into the system not as a bump on the ass afterthought.

    Hey, there are open sourced operating systems. Is a network really that much of stretch?

    --
    Leave the gun, take the cannolis.
  42. Old news by poptones · · Score: 1
    Google "ip telphony" and "india" and you'll see lots of articles. A few years ago villages were beginning to make wide use of IP telephony via computers and some governments went so far as to sniff and destroy packets carrying voice messaging. Other areas simply firewalled out the relevant ports. They eventually figured out it was an impossible case to ban such use, but that won't stop anyone from taxing them.

    Don't forget you don't have to tax EVERYONE or regulate EVERYONE. All you have to do is tax and regulate the biggest players in the field and soon no one else wants to enter the game. It might be impractical to tax every individual, but even India has managed to tax certain players. Make it too expensive to organize properly, and the technology will be doomed.

    Remember: Napster didn't "invent" p2p, or mp3, or swapping ripped CDs. All Napster did was commoditize the service. And once commoditized, it was easily squashed. A dozen others may have taken its place, but the only profit left in the industry seems to be made by exploiting user's computers in unethical manner. The powers in charge are determined that p2p facilities of any sort are too be unprofitable until they can figure out how to recover their monopoly controls - and government is all about control. One hand washes the other because both are bound to the same chain...

  43. tomstdenis by Anonymous Coward · · Score: 0

    cans the manham.

  44. Hmmm by Anonymous Coward · · Score: 0

    Soo here comes yet another techlaw that's mired in the feds pretending not to want to tax as a metered tax but would rather have a flat rate tax, the states of course what the oposit.
    And they wonder why people tell them both to go to hell?

  45. How do you tax VoIP? And why? by dtfinch · · Score: 1

    If I release a free VoIP app, how could they expect to collect taxes on it? It'd just be sending an audio stream to another computer while at the same time receiving another stream back from that computer. Why tax just one form of two way communication? Especially the one most closely matching resembling speech, as in the free speech guaranteed by the first amendment? They wouldn't tax it just for the money. They'd tax it as a sneaky way to require call logging. Private voice communications would be a form of tax evasion. And by classifying VoIP as a type of telephone communication, they could require that all encrypted VoIP apps support wiretapping.

  46. Title by Greyfox · · Score: 0, Offtopic

    Was that a haiku?
    You were one syllable short
    Better luck next time

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  47. Question on Current Internet Tax Ban by jp10558 · · Score: 1

    Just what does this cover anyway? Because I found out this year, retroactively, when I was doing my New York State taxes that they had a section for stuff you bought over the internet so you could pay tax on that, or they had a standard amount they would charge you if you didn't itemize(yeah, right, I didn't know to itemize untill a month after the year ended!). Is this legal...? I wondered about this at tax time, it seemed shady because one, they are basically retroactively taxing a year on purchases over the net, and two - at least till this year, wasn't there a BAN on internet taxes?

    --
    Opera, Proxomitron-Grypen,GPG 0x0A1C6EE3
  48. The clause _is_ relevant by Baldrson · · Score: 1

    Regardless of what current internet practices are, States will have an incentive to tax -- and can set up their own regulations that encourage intrastate-only traffic while discouraging interstate traffic. For an analogy, there are States that raise most of their revenue with a sales tax and charge a "use tax" for products purchased in other States. This affects people living on the State-border towns quite a bit.

  49. Bush's Snout in The Trough by Anonymous Coward · · Score: 0

    I NEVER vote for the same party twice in a row. The same beurocrats run the show no matter who you elect, so you're only chosing the window dressing. The ones you elect are merely the ones who stuff their snouts in the public trough and point their asses at you.

    Two or three terms of successive government change motivates the parties to show an interest in pleasing their consituents again.

    Ignore the ocean of negative publicity flowing from politicians about their rivals in the lead up to the election as it's invariably black-tongued lies or half-truthes (also lies). Focus instead on the thimble full of promises they make to you.

    I have a proposal. In the 3 months leading up to an election no politician should be allowed to comment on an opposing party in promotional material. They should only be allowed to talk about what THEY will be doing for YOU. This is ALL that matters. If there are genuine problems with a contenders morals, the press will pick it up and have a field day. I would be more inclined to trust a reporter than a politician, and I would be more inclined to trust a rattlesnake than a reporter. hmmmmm......

    I've seen some of what Bush has allowed his lackeys to say about Kerry. Bush has no respect for Kerry as a veteran or a man. I suppose most draft dodgers are often quite disrespectful of vets. Probably misplaced shame I'd say.