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U.S. House approves permanent ban on Internet access taxes

2014-07-16 09:20 by

 

On Tuesday the House passed a permanent extension of the Internet Tax Freedom Act, which prevents new taxes on email and Internet access services. Under current law, the moratorium expires Nov. 1, exposing Internet users to the same kind of connection fees that often show up on telephone bills.

"This legislation prevents a surprise tax hike on Americans' critical services this fall," said Rep. Bob Goodlatte, R-Va., chairman of the House Judiciary Committee. "It also maintains unfettered access to one of the most unique gateways to knowledge and engine of self-improvement in all of human history."

The legislation also eliminates an exception allowing seven states, including Texas and Ohio, to collect taxes on Internet access. The grandfather clause in the temporary extensions to the ban applied to states that had taxes in place before Congress passed the first tax moratorium in 1998.

However, the bill does not address Internet sales taxes, a separate issue that Congress has debated for several years. The House has failed so far to act on a bill, passed by the Senate in May 2013, that would allow states to collect sales tax on products sold over the Internet.

Read more -here-

 

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