Amended Internet Tax Ban Will Not Include VoIP

Spritzer writes "Yesterday, the House Judiciary Committee approved an amendment to the Internet Tax Freedom Act of 1998 which would prevent the tax ban from expiring. However, the amendment also eliminates tax protection for VoIP services. 'The amendment, offered by committee Chairman John Conyers Jr., a Michigan Democrat, would extend the ban on Internet access taxes until Nov. 1, 2011. ... The Conyers amendment would allow nine states with Internet access taxes to continue them. It would also narrow the definition of Internet access, excluding services such as VoIP from the tax ban.'"

Comments

When is VOIP not VOIP?

[Captain Zep]

The idea that some internet based services are taxable and some aren't, when there's no reliable way to classify them makes for a rather broken system.

If pure VOIP starts getting taxed, then it'll just be adjusted so that it's not technically a VOIP service. E.g. is it VOIP if it includes video? What about in-game voice systems? What if it does some random surfing in the background at the same time? Is a system that sends voice clips via email a VOIP system? What if I'm exchanging music or sound effects - do they count as a 'voice'?

Z.

Re:Exclude VOIP?

[Beyond_GoodandEvil]

Hmm - how does Voice Over Internet Protocol not constitute internet access?
You looking at this the wrong way, this isn't about rational laws, this is about states seeing a decline in revenue due to people giving up their (taxed)landlines for VOIP(currently untaxed). So to keep the state coffers full, we slip in an exemption for VOIP so states can keep collecting money on phone service.