U.S. Senate considers extending internet tax ban

by Brad Linder Sep 21st 2007

You know how you you don't have to pay taxes on your internet service? (If you're a US citizen, at least). Yeah, that might last. In fact, it might not even last much longer than a month.

In 1998 the U.S. government passed a law preventing states from taxing internet access. The goal was to encourage the growth of internet service providers. The law is set to expire on November 1st, but the Senate is considering an extension.

There's some debate on the issue. But the good news for consumers is that the debate isn't centered on whether the tax ban should be extended. Instead, Senators are debating whether the ban should be made permanent or just temporarily extended.

The bad news is that if a compromise isn't reached within the next six weeks, the moratorium will be lifted and theoretically states could start issuing taxes. We seriously doubt they'll do that until if there's a good chance a new law will be put in place. But you never know.

Tags: irs, senate, tax, taxes

Reader Comments (Page 1 of 1)

Michael said 11:21AM on 9-22-2007

This would be a good chance for the Democrats to prove they're not "tax and spenders."
Which they are.

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