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US House Passes Permanent Ban On Internet Access Taxes

jfruh writes: In 1998, the U.S. Congress passed a law that temporarily banned all taxes imposed by federal, state, and local governments on Internet access and Internet-only services, a ban that has been faithfully renewed every year since. Now the U.S. House has passed a passed a permanent version of the ban, which also applies to several states that had passed Internet taxes before 1998 and were grandfathered in under the temporary law. The Senate must pass the bill as well by November 1 or the temporary ban will lapse.

20 of 148 comments (clear)

  1. This will die in the senate by halivar · · Score: 3, Insightful

    They'll never pass up an opportunity to squeeze more money to fund pet projects back home. Hell, they're already talking about tapping the untouched potential of my 401(k).

    1. Re:This will die in the senate by Sowelu · · Score: 3, Interesting

      In truth, this is also why Social Security has its problems. When it was established, it was "You likely won't live to use it, but if you do, you will be well taken care of". It was insurance against an uncommon and, in a way, kind of negative thing happening to you: Living to an age such that you could no longer support yourself. It was a luxury that not many people had, and it could absolutely be hard on your family. Of course, now almost everyone lives long enough to collect it.

      No, it wasn't meant to be a replacement for savings, and you weren't supposed to get out what you put in. A small portion of the population was supposed to collect it, because most of them didn't live long enough to.

    2. Re:This will die in the senate by Anonymous Coward · · Score: 4, Informative

      Social security was absolutely meant as a replacement for savings. It just didn't mandate away the ability to save money independently from paying social security. Savings is personal financial security with sole benefit, Social security is community financial security with a shared benefit.

    3. Re:This will die in the senate by geekoid · · Score: 3, Informative

      no, it wasn't. If you live through your tax paying year to 60, it was very likely you would live just as long as you would now.

      Male - 1940 would live 13 years after turning 60
      Male - Now live 15.5 years after turning 60.

      So it a couple of years, easily adjusted for and planned for. Don't by into the pub/libertarians lies. SS is fine.
      In fact, with a minor change, we could lower the age of retirement, I know, it's counter intuitive and requires math.

      Really we nee congress to stop stealing the money from SS the we pay into.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    4. Re:This will die in the senate by geekoid · · Score: 3, Insightful

      It's not a Ponzi scheme. I suggest you do some research instead of letting fox think for you.

      THE problem is congress keeps taking money from it.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    5. Re:This will die in the senate by LynnwoodRooster · · Score: 2

      The money that has been taken has been backed with T-bills. Financially, it's as if the money was never taken out in the first place. Nevertheless, Social Security is now running in the red (drawing down on those T-bills) and will continue to do so until it's out of cash sometime in the next 20-25 years. Thus the talk about raising the tax rate, or lifting other exemptions (without raising the equivalent max benefit), or other means to increase funding without increasing expenses.

      Social security is, in fact, behaving as a classic Ponzi scheme, except to keep the scheme going the schemer (US Federal Government in this case) is planning to charge late entries even higher rates to invest in the scheme. The problem is not use of funds now - the problem is structural. It will not survive long term without restructuring because it promises to pay out more than it receives - like a Ponzi scheme.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    6. Re:This will die in the senate by ArmoredDragon · · Score: 2

      It does meet every defining characteristic of a Ponzi scheme, however because it is government sanctioned it technically isn't one. Right now we're seeing the sunset of what a Ponzi scheme looks like; that is, where it fails because the new investors aren't paying enough to cover the dividends paid to the older investors.

      I personally don't get why we don't just get rid of it in favor of a universal pension system.

    7. Re:This will die in the senate by phantomfive · · Score: 2

      Even if congress didn't keep 'taking money' from it, social security would still run out of money (by 2040 or who knows when), because it is removing more than it puts in. This is an easily fixable problem, at least, there are many ways it could be fixed........however with each year that passes, the fix becomes harder. If we had fixed it in 2000, it would have been easier than now.

      It's STILL easier to fix if we do something now, rather than waiting, but it seems destined to remain yet another example of government incompetence.

      --
      "First they came for the slanderers and i said nothing."
    8. Re:This will die in the senate by Kuberz · · Score: 2

      According to SSA, once you make it to 65 (which is when many chose to retire), your chances of making it past 80 go wayyyyy up!!!!

      http://www.ssa.gov/planners/li...

      I use to work in life insurance, trust me, your facts are wrong. Social Security is not fine. It needs much more than a minor change. This is due to Social Security being dumped into congresses budget. Meaning when the government gets all the Social Security tax money in, it pays out what it needs to, and then takes the rest and spends it. Even if they made changes now (which will not happen), it would make little difference.

      Once you take into account labor force numbers, and then take into account baby boomer numbers... I'm sorry your just wrong. I mean your basically doing elementary school math and expecting to solve a college level problem.

      And how anyone could support this BS program is beyond me. Basically, it's Uncle Tom saying "hey if you give me % of every paycheck, when you retire I promise I'll give it back". You would get way more money (and I do mean way more) if you put that money in 1 of any of the other retirement programs that have been established. Social Security should be optional, or, if people really think you should be forced into a retirement program... At the very least, you should be able to sub your Social Security tax into a separate program.

  2. Re:November? by gunner_von_diamond · · Score: 2

    Without reading the details.. I doubt this will pass, if its democrat sponsered, the repubs will shut it down in the house. If it's GOP approved, the senate will kill it. Gotta love our divided country!

    Seperation of power results in loss of power for all!

  3. Re:So then no public funded internet? by Anonymous Coward · · Score: 5, Informative

    Using taxes for internet is something completely different than taxing for using the internet. This law bans the latter. You're describing the former.

  4. Re:So then no public funded internet? by jklovanc · · Score: 2

    Not necessarily. It just means no public internet funded by a tax paid by people who pay for internet access and Internet-only services. The funding could come from general taxes.

    There is also no guarantee that such taxes would go to fund public internet. It is quite possible that they would go into general revenue and be use to fund other things.

  5. the other way around by raymorris · · Score: 3, Informative

    The bill says that your internet bill won't be used to pay for government, not that government can't pay for internet. Concrete examples - you can't tax voting. Governments can and do pay for voting machines. You don't get taxed on sending your kids to school. The government does pay for government schools. You don't pay a tax on researching solar panels, the government does pay for solar panel research.

  6. Re:So then no public funded internet? by AgentSmith · · Score: 2

    Then universities will have to find a way to communicate information between them. They will allow students to communicate along this network and setup locations to have conversations. Soon the public in the surrounding areas will have access to this inter and intra connection. Languages will be formed to allow simpler communication and distribution. Soon it will be used by businesses and completes monetized. Then universities will have to find a way to . . .

  7. Re:November? by Dins · · Score: 4, Insightful

    Seperation of power results in loss of power for all!

    As it should be. We need fewer laws, not more of them.

  8. Re:So then no public funded internet? by Charliemopps · · Score: 2

    This means no public internet, it will forever now be a private enterprise. Not sure I like that possibility in the long run given how the ISP monopolies behave.

    So you're saying you'd like the NSA to have direct access to your internet activity? Nice.

  9. Re:There's no such thing as a "permanent ban" by Dragonslicer · · Score: 2

    I thought the exact same thing, but the summary seems to say that it does change one thing: states that currently have taxes on Internet service are no longer allowed to have them. The word "permanent" is a bit weird, but apparently it only means "does not require annual renewal".

  10. a bit of legislative history by nimbius · · Score: 2, Interesting

    in 1998 there was a sizeable movement to declare internet access a 'basic human right' and as such, make it an entitlement. Since republicans and conservatives alike respond to the word Entitlement in much the same way as a microwave responds to a sack of paper clips, its safe to say this legislation was enacted to ensure your internet remains permanently comcastic. so how did this come to pass?
    the International Telecommunication Union (ITU), following a proposal by the government of Tunisia during ITU Plenipotentiary Conference in Minneapolis in 1998, approved Resolution 73 to hold a World Summit on the Information Society and put forward it to the United Nations. It cant be stressed enough that 1998 was clearly a better year for congress as is evidenced by the fact that legislators got wind of the WSIS and its strong position on internet as a basic human right. Much like affirming things like the kyoto protocol and the basic human right to water, the internet was sandbagged in america to ensure it would never amount to something as horrifying as a free service. amending it recently simply extended its reach to local governments. It did now however close a loophole being exploited by local municipalities in which the 'tax' for their paid services like WiMAX and municipal broadband was bundled under things like vehicle registration fees (something used by local governments that need to fund schools but have politicians who promise no new taxes.)

    by shitting on the idea of a tax for internet service, congressional republicans have created a two-tier system in america in much the same way as education and housing exist. underprivileged or poor students and families seeking internet access are now relegated back to the library, and those libraries in turn forced to shovel federal dollars into the gaping maw of AT&T and Verizon for something that, yes, is increasingly more of a basic human right in the 21st century.

    --
    Good people go to bed earlier.
    1. Re:a bit of legislative history by Curunir_wolf · · Score: 4, Insightful

      As was previously pointed out, there is nothing in this bill to prevent PAYING FOR Internet services out of tax revenues, only that services can't be arbitrarily made more expensive by local governments, states, and the Federal government itself. There's also nothing preventing municipalities from building networks and Internet services - and they can charge for that service just like anyone else. They just can't charge a service fee AND a tax.

      So your rant is based on a false premise.

      To use your phrasing, it says we don't want governments shitting on the idea of having Internet access without paying a tax for the privilege.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
  11. Yeah House! by njhunter · · Score: 2

    Hopefully the Senate will follow right away and they won't try to kill it with stupid politics.