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U.S. Congress Poised To Vote On Internet Tax Ban

jangobongo writes "'After more than a year of leaving the threat of new state- and city-levied taxes looming over Internet access providers and online merchants, Congress is poised to reimpose a moratorium on taxing Internet access,' according to eWeek. The House had approved a permanent moratorium while the Senate had approved a temporary ban. Members of the House are pushing to compromise and to vote today on the Senate's approach. President Bush is expected to sign the legislation when it is passed."

49 of 409 comments (clear)

  1. Can they levy a tax on spammers? by xmas2003 · · Score: 2, Funny

    $1 a junk Email ... or a day in prison ...

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    Hulk SMASH Celiac Disease
    1. Re:Can they levy a tax on spammers? by Nadsat · · Score: 2, Insightful

      No, Bush's policy has always been to ease taxes on the rich while shifting them to lower icomes. The question is... how can Bush tax the poor users of the internet while letting the rich shop for free?

    2. Re:Can they levy a tax on spammers? by chris_mahan · · Score: 3, Funny

      No fees on high speed, high fees on modem.

      That will also kill AOL as a side effect, but we have to do what we have to do for National Security and The Country...

      --

      "Piter, too, is dead."

    3. Re:Can they levy a tax on spammers? by britneys+9th+husband · · Score: 3, Insightful

      Actually, Bush's policy has been to ease taxes on everyone (with a focus on rich people) while shifting them to future generations. That's what the huge budget deficit (Congress just voted to raise the debt ceiling another $800,000,000,000.00 they're spending money so fast in Washington) does. If you're under 18, you can't vote, but your parents can, and they care about your future (hopefully). If you haven't been born yet, your parents are partying or getting drunk or attending college or posting Slashdot comments or whatever, and they're not thinking about your future yet -- as a result, Bush can screw you without political repercussions.

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    4. Re:Can they levy a tax on spammers? by Peyna · · Score: 3, Insightful

      Not only that, but his plan to "privatize" social security is founded on the same principles.

      In short, he wants to phase in a system where part of your social security taxes go into a private account that you can choose how to invest, and the rest go to the general public fund.

      So, what is going to happen is that the amount of money currently moving into the social security fund will drop, the money moving out will continue to rise with the number of people retiring and living longer. Things won't really even out until those who are 16 when the program is implemented retire. The only way to fix this gap is to raise taxes or cut spending elsewhere. Of course, Bush won't raise taxes or cut spending, so when finally get a president with the guts to do that, he'll be portrayed as a horrible person who wants to stick his hands in our pockets and rob us. When the real thief is the person that created the deficit in the first place.

      I find it amazing that while telling us that "privatizing" social security is putting our money in our control, what it is really doing is the government is not only forcing me to pay for everyone else's well-being, they're forcing me to invest some of my own money.

      I wonder if the government will only allow me to invest in funds they approve of and don't violate their morals.

      A few interesting links related to political parties and economics

      Federal Deficit by Political Party
      Jobs by President and Party
      Economic policies of Bush administration result in more abortions

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      What?
  2. Excellent idea by Anonymous Coward · · Score: 4, Insightful

    I hope the ban passes. Americans are badly overtaxed as it is. As more and more of the economy shifts to the Internet, keeping Washington's greedy mitts out of it will mean a defacto tax cut for everyone.

    (If you doubt that we are overtaxed, look at the money wasted on paying millionaires like Ted Kennedy a Congressional salary, no-bid Halliburton contracts, fish atlases, and pork barrel projects so multi-millionaire moguls don't have to pay to build their own stadiums).

    1. Re:Excellent idea by mtrisk · · Score: 2, Interesting

      Agreed. If they tax us, the government should put that money back for the public's benefit. How would we benefit from an internet tax? Libre Fiber connections, courtesy of the government? I don't think so. It's simply a money grab.

      --

      Without a proper flamewar, Anonymous was undecided on what shell to run.
    2. Re:Excellent idea by pclminion · · Score: 4, Insightful
      money wasted on paying millionaires like Ted Kennedy a Congressional salary

      So you're saying different Senators should be treated differently depending on who they are and how much money they have? Who gets to decide this complicated set of rules and exceptions? You?

    3. Re:Excellent idea by MorboNixon · · Score: 5, Insightful

      Perhaps your argument isn't so much that we're overtaxed, but that the proceeds from taxes aren't being spent wisely?

      I agree with both points. I think we are overtaxed, but I think the far larger problem is that congress does not spend the money appropriately.

    4. Re:Excellent idea by Hatta · · Score: 3, Interesting

      I hope the ban passes. Americans are badly overtaxed as it is.

      While the end result may be ok, is it really the place of the federal government to dictate what states can and can't tax? But it's not like the 10th amendment means anything anymore.

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      Give me Classic Slashdot or give me death!
    5. Re:Excellent idea by mogrify · · Score: 2, Insightful

      As an American, I'd gladly pay 60% income tax if it meant I could get health care, good schools, low crime, lots of vacation, decent maternity leave for my wife, cheap higher education, and a social safety net if something should go wrong. Or I could just move to Germany.
      But you're right, this tax shouldn't go through... not necessarily because of general overtaxation, but just because the costs of good access keep rising, and are subject to lots of miscellaneous fees already.

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      perl -e 'foreach(values %SIG){$_="IGNORE";}while(){}'
    6. Re:Excellent idea by sysopd · · Score: 2, Insightful
      I think we are overtaxed, but I think the far larger problem is that congress does not spend the money appropriately.

      I believe the problem is the ever-increasing scope of government. The way to effectively solve a problem is to be involved in it as your profession- a part of the industry, with competition. "Necessity is the mother of invention," and in capitalism profit/growth is the necessity and competition is the catalyst.

      Congress attempts to solve a problem by throwing money at it. But in order to be successful they have to know more about what they're doing, which in turn costs more money. So either you pay a lot for a little, or you pay a whole lot for a little more.

      If government would reduce their role in our lives and thus their spending, everyone could put money into things they care about. I believe putting faith in people you can hold responsible, people that know what they're doing and are involved in their specific industry is the best answer. Why do people keep asking their congressman to fix some supposed problem? Maybe because they want everyone to be forced to pay for a cause they believe in. But if this is the case they need to realize that their time and money would be better spent starting up a non-profit or volunteering for one.

      Today we have nosey people that want to impose their beliefs and/or morality on everyone else through the strong arm of government (liberals with welfare plans and conservatives with morality) and groups of industry lobbyists that desire to limit freedoms in the name of the almighty dollar through the back door of government.

      If we had true reform, true radical restructuring of government with the freedoms originally intended by the founders and a small yet effective government acting according to its purpose-- politics would be a lot more boring.

    7. Re:Excellent idea by ViolentGreen · · Score: 4, Informative

      Try reading the article. This isn't a ban on Internet sales tax. This is a ban on taxing Internet service. Sales tax is determined by whether the store has a presence in your state.

      --
      Not everything is analogous to cars. Car analogies rarely work.
  3. Lets hope so by Realistic_Dragon · · Score: 5, Funny

    If they tax the internet the real geeks can go back to fido/bbs and we can let the useless languish in commercialised hell.

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    Beep beep.
  4. it was always unlikely by howhardcanitbetocrea · · Score: 3, Funny

    it was obvious, think about it and the possiblility of the US taxing me in Australia is pretty remote - unless they get the RIAA to track me down.

    --

    President ISES
    (International Society for Elimination of Sigs)
    1. Re:it was always unlikely by John+Seminal · · Score: 3, Informative
      it was obvious, think about it and the possiblility of the US taxing me in Australia is pretty remote - unless they get the RIAA to track me down.

      They will tax you at the point of sale. So the guy selling you the X will add on 1% or 2% sales tax.

      --

      Rosco: "If brains were gunpowder, Enos couldn't blow his nose."

  5. RTFA by Greg01851 · · Score: 5, Insightful

    "Congress is poised to reimpose a moratorium on taxing Internet access" Internet Access... not all internet purchases... i.e. your bill from your ISP will be a bit lower, unless you use AOHell :)

    1. Re:RTFA by Peyna · · Score: 2

      your bill from your ISP will be a bit lower

      How many jurisdictions currently tax Internet access, and how many ISPs will lower your bill, or just raise it up to the rate you were paying with the tax on top of it anyway?

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      What?
  6. Re:Square Peg into a Round Hole by Kenja · · Score: 2, Informative
    "Once again, a case of politicians that can't grasp the concept of a transnational entity that doesn't fit into their neat little system of sovereign nation states.

    Once again a slashdot reader that failes to read the summary much less the FA. This is a bill to STOP taxs on the internet. Does that fit into your world view?

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
  7. current tally: by bersl2 · · Score: 5, Funny

    good things Congress has done this week: 1
    bad things Congress has done this week: a lot more

    That's better than most weeks...

    1. Re:current tally: by goon+america · · Score: 4, Funny

      Whoah, slow down there, cowboy. Since when does Congress do more than one thing a week?

    2. Re:current tally: by Tablizer · · Score: 2, Insightful

      When they think that no one is looking!

      That is how the first H-1B visa worker increase got through. Somebody tacked it onto a large bill with lots of items at the last minute. Nobody wanted to delay their vacation by questioning it and stopping an entire bill for just one item (I think there were a few other sneakers), so it floated through with almost no debate.

  8. NO TAXATION! by sciguy125 · · Score: 5, Insightful
    Personally, I don't think that they should be allowed to tax any communications. Actually, I take that back. They can tax it if they only use the money to pay for it.

    Taxing communications is like taxing air. We all need to communicate with others the same way we all need to breath. Why not just tax people on the streets for talking to each other?

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    1. Re:NO TAXATION! by derkaas · · Score: 4, Insightful
      Taxing communications is like taxing air. We all need to communicate with others the same way we all need to breath. Why not just tax people on the streets for talking to each other?

      I don't disagree with your sentiment, but your argument for untaxing communications could be extended to just about anything. For example, food and a place to sleep at night are just as essential, yet both, especially the latter, are taxed heavily by many governments.

  9. Jeez by IBeatUpNerds · · Score: 2

    How about utilizing the billions upon billions (trillions?) of annual tax dollars and eliminating the bullshit and spend it wisely. Oh yeah, because nobody can agree on what's a wise tax.

  10. Is this your job? by maximilln · · Score: 4, Informative

    Consider: "The right to regulate the internet"

    Read the Constitution of the United States of America. Is there any mention of the internet in that document? No? Let's have a look at Amendment 10:

    Amendment X
    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.


    Okay. So the "right to regulate the internet" is not under the authority of the Feds because it's reserved to the States or the People.

    "What of interstate commerce?", say the trolls.

    Let me point you to Amendment 9

    Amendment IX
    The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.


    The "right to regulate the internet" has already been established as retained by the States or the people and, therefore, the interpretation of "interstate commerce" can not be enumerated to include it. It is forbidden to expand the meaning of interstate commerce to include anything not specifically defined in the Constitution.

    Don't like it because the politicians haven't checked the 9th or 10th since the early 1800s? These are the knobs you vote for--don't cry to me. Don't like it because 95% of what the Feds do is disqualified by this assessment? Maybe you should move to a communist nation so that you can be happy using the feds to siphon everyone else's cash to assuage your penile deficiency.

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    +++ATHZ 99:5:80
    1. Re:Is this your job? by MorboNixon · · Score: 2, Funny

      Don't like it because the politicians haven't checked the 9th or 10th since the early 1800s? These are the knobs you vote for--don't cry to me.

      Does this mean that you don't vote? Or that you haven't voted since the 1800s?

    2. Re:Is this your job? by maximilln · · Score: 2, Interesting

      It is perfectly possible for the Supreme Court to be unconstitutional. That is precisely what I am asserting.

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      +++ATHZ 99:5:80
    3. Re:Is this your job? by anthony_dipierro · · Score: 2, Interesting

      Wow. This is quite misinformed. First of all, States don't have rights. Only people do. Amendment 10 talks about powers (which States can have). Amendment 9 talks about rights (which according to our founders are God-given, and God didn't give them to States but to people).

      Further, protection of people's rights to engage in interstate commerce free from taxation by the states is precisely what the founders had in mind when they put in the Interstate Commerce Clause. It wasn't until much later that Congress figured out that it could use the clause to hinder commerce, rather than to promote it. Frankly, with the dormant commerce clause it'd be questionable whether or not the states could tax the internet in the first place. With Congress speaking directly to the point they certainly can't.

      Finally it should probably be noted that the 9th and 10th Amendments are redundant. They are basic truisms upon which the entire Constitution is built. I agree that much of what the Feds do goes beyond the way the Constitution was originally intended, especially with regard to interstate commerce, but this just isn't an example of it.

  11. Ban on taxing access, not taxing purchases by MaineCoon · · Score: 4, Insightful

    So many posts here seem to assume this article is about taxing purchases made over the internet. That is not the case. This is a ban on taxing ACCESS (i.e, a tax on your DSL/cable/dialup services).

    RTFA, people.

    --
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  12. whoa there... by Cryptnotic · · Score: 4, Insightful

    I think he was inplying that Ted Kennedy is a worthless sack and his salary is a waste of everyone's money.

    I'm actually in favor of the idea that congressmen should be paid by the people of the state they represent. Who is it they represent anyway? Do they really represent the people of Massachusetts for example, if their paycheck comes from the United States Treasury?

    --
    My other first post is car post.
  13. Well, Duh by aredubya74 · · Score: 4, Interesting

    President Bush is expected to sign the legislation when it is passed.

    Of course he will. He has yet to veto a single bill as President. It's easy to not have to, when your party controls both houses of Congress and is on the edge of a long-term conservative majority in the Supreme Court.

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    RW

    1. Re:Well, Duh by anaesthetica · · Score: 2, Funny

      Unbelievable. President Bush and the Republican Congress are actually poised to do something good for us geeks--keeping internet access tax-free--and some slashbot still manages to find a way to turn it into an anti-Bush troll. Simply stunning.

    2. Re:Well, Duh by SewersOfRivendell · · Score: 2, Insightful
      you think the President doesn't hammer out those kinds of things with Congressmen?

      Yes, actually, he doesn't hammer out those kinds of things with congressmen. He hands orders from Karl Rove to the Republican congressmen, and ignores the Democrats, who then roll over for fear of being portrayed as 'obstructionist,' when in fact they'd be happy just to be included in the discussions -- which, as previously noted, don't actually occur in the first place. And so it goes...

  14. Re:there is no veto by Anonymous Coward · · Score: 2, Interesting

    Or he's just not a dumbass like Clinton who cries when Congress disagrees with him and vetos everything..

  15. Re:Feeling a bit testy are we? by maximilln · · Score: 2, Insightful

    The power to regulate interstate commerce cannot be enumerated to include the power to regulate internet access. Regardless of who created the internet, there is not right to regulate communication access as provided in the Constitution. As such it is reserved to the States or the People.

    The "interpretation of the Constitution" is all bogus. As clearly outlined in Amendment 10 anything not specifically addressed in the Constitution is simply not a responsibility of the Feds.

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    +++ATHZ 99:5:80
  16. For all those not reading the article... by Cryptnotic · · Score: 5, Informative

    ...this is about the federal government preventing the states from levying taxes on internet access. States currently tax telephone services, and some states would also like to tax internet services. The federal government currently forbids this, however they might stop forbidding it.

    This does not mean that the federal government would tax internet services. That may or may not be within their power. That is a different constitutional argument though.

    This does not mean that your state would charge taxes on internet services. It would still be up to your state legislature and governor to decide on such a tax, approve it, and implement it.

    --
    My other first post is car post.
  17. Re:Food for thought: by MorboNixon · · Score: 2, Insightful

    Nah, probably not. They'd probably be too tied up in impeachment hearings.

  18. Re:I like the idea of an internet tax... by back_pages · · Score: 3, Insightful
    Since when did the Constitution say that the government was supposed to favor one business over another? The United States is capitalist, if the brick and mortor stores can't compete with the internet, then they can't compete. Let them fade away just like the horse and buggy. It's the future; you should embrace it.

    In my opinion, that ended (if it wasn't already over) when the American president, a candidate of the Republican party which supposedly contrasts the more socialist Democrats, told American citizens that buying identical pharmaceuticals for a lower price in Canada was scary, dangerous, and bad. Apparently, we're only interested in "free market" as a slogan. We're really in favor of corporate profits in spite of the quality of life for the average citizen declining.

    I wish this didn't sound like a Democratic rant. I'd love to see a Republican candidate in 2008 who actually stands for what the Republican party supposedly represents.

  19. try england by Bad+Ad · · Score: 2, Funny

    you think you're over taxed in american?

    try living in england.
    once you're finished saying "what the fuck" after your first visit to a petrol statiom, let me know. :)

    1. Re:try england by Afrosheen · · Score: 5, Insightful

      Canada seems a little different in that they can see their money going to good causes. Causes like a public health program, extremely clean cities, environmental controls, etc. Again, the main beef most of us Americans have is that we see ourselves being taxed more all the time but there's no tangible result. Quality of life just isn't improving, Social Security is still getting raped, the highways are no better, etc. Show me where that extra penny sales tax is going, in concrete form, and I won't complain if I feel it's a worthy improvement.

  20. Re:there is no veto by mrchaotica · · Score: 2, Insightful

    There are many problems with Bush, but that's not one of them. Presumably, if Congress passes a law it reflects the will of the People, so if the President vetos it he'd better have a damn good reason for doing so!

    Besides, since not vetoing the law is good in this case, criticizing him for it is misplaced -- save it for when he actually screws up!

    --

    "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  21. Re:Ted Kennedy is just a good example by ZB+Mowrey · · Score: 2
    This will probably hose my free site at ... but if anyone wants to take a look, I wrote a couple pdf docs as part of a petition (one's the actual petition and one's a persuasion-to-sign doc).

    I want a Constitutional amendment that says Congress can't give itself pay raises. Instead, I think we the People should get to vote on that, as part of the election process. The framework is already there, ready to be used.

    Feel free to grab copies and spread 'em around. Redistribution isn't just allowed, it's highly encouraged!

    --

    Self-referential sigs are rarely entertaining.

  22. I will *so* do this! by wirefarm · · Score: 3, Funny

    Just as soon as I can get my modem to work over Skype...

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    -- My Weblog.
  23. Communism and the US government by Infonaut · · Score: 2, Insightful
    The US government currently serves to extract the resources of the entire population and funnel it to dedicated projects of the federal government's choosing. That is EXACTLY the communist model.

    That statement is not "exactly" or even remotely correct. Your hostility to the federal government is coloring your interpretation of the facts.

    Communism, which btw has never been truly achieved, is based on the concept of collective ownership. No matter how onerous the US federal government's "extraction of resources," private property (physical and intellectual) ownership is at the core of the American system of government.

    You berate people for not *understanding* that the Constitution is not a matter open to interpretation, yet you take great liberties with the meaning of the term communism in your effort to paint the US government as a bogeyman.

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  24. Re:You can quit cheering tax-and-spend Democrats n by Harinezumi · · Score: 2, Interesting

    The problem with the current crop of Republicans is that instead of tax-and-spend they're borrow-and-spend, which is tax-and-spend plus interest. The government should not try to cut taxes, it should try to cut spending. Given a real long-term surplus, the taxes will take care of themselves.

  25. Re:Easing taxes by Nadsat · · Score: 2, Interesting

    What fact? OK, do the math. Show your stuff. Don't hold out. And don't assume anyone is left here. Or right. What's with all these assumptions?

    Looking for truths here. Not left or right blah blah blahs.

    Although, seriously, are you really trying to convince me that Bush is adopting a sort of anti-reagonics strategy?

  26. The real problems... by Antony-Kyre · · Score: 2, Interesting

    1. Wasteful government spending.

    Some say spending over a half trillion per year on "defense" purposes would qualify. Some say spending hundreds of dollar on comfy chairs would qualify. This subject is very opinionated.

    2. The dreaded April 15th, income tax day.

    Making criminals out of those who may not be able to afford to pay, or simply mess up. And allowing the evil geniuses to reap the benefits either through loopholes or ways of not reporting it.

    Note: Some say a consumption tax (sales tax) would hurt the poor. Consider a consumption tax with rebates to offset the poverty level. No one can 'really' avoid paying a sales tax, unless the business is crooked.

    3. In this so called democracy, it's really a republic, where we represent people who are suppose to be our voice. But nothing prevents them from really following that through.

    A more democratic system would be nice, where citizens could speak their mind. e-Governments, no salary elected officials for representation when needed, and instant direct voting.

  27. Re:Easing taxes by N3WBI3 · · Score: 2, Informative
    are you a retard?!? Bush cut the taxes on people earning ONE MILLION dollars a year, plus. Does that makes sense to you. If you earn ONE MILLION DOLLARS a year, net or gross, you are not a middle-class citizen.

    Umm I cant speak to his IQ but he seems to be more informed than you. While bush did give a cut to people making 1 Million or more he gave a cut to every couple making more than 56 thousand dollars, and ever individule making more than 26 thousand dollars. does 26K = 1 million to you? The only brackets that did not get cut are the two lowest whos members usually get everything back (including FICA). Damn it man there is not tax bracket that starts at a million dollars so how is it that the Bush plan gave a tax cut only to those makign a million or more?

    Old -> New, High Cutoff (Married)
    38.6 -> 35, None
    35 -> 33, 311K
    30 -> 28, 174K
    27 -> 25, 114K
    15 -> 15, 56K
    10 -> 10, 14K

    WTF is wrong with you!

    I think his problem is that he bothered to buy a clue before posting a rant on slashdoat...

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