Temporary ban on Internet tax nears end

A

Temporary ban on Internet tax nears end
Posted: Friday, October 31, 7:37am EST

A moratorium on taxing Internet services expires Saturday, and a push to extend it is bogged down by concerns that making the ban permanent would curb the ability of state and local governments to collect traditional telecommunication taxes. For some, a bigger problem is the federal government imposing its will on states. "This is the federal government telling state and local governments that they no longer have control over their revenue sources," said David Quam, director of state-federal relations at the National Governors Association. But most of the ban's biggest proponents say they don't worry about the temporary law expiring, since the short-term ban has lapsed in the past without a surge in taxation. Federal law has blocked state and local governments from taxing services that allow people to connect to the Internet since 1998. Its backers say it helps make the Internet available to nearly everyone. "The Internet is an incredible resource and should be available for the lowest cost possible so everyone has access," said Sen. Max Baucus, D-Mont. In the five years the ban has been in effect, technology raced ahead of the law. Problems erupted this year when lawmakers tried to make sure that new and faster connections, such as DSL, cable and satellite, remain tax-free.

We reduce taxes for the rich and corporations and impose them on those in most instances have the least ability to pay. Based upon past performance do you think our congress will extend the law. Or are they less worried about the general populance than they are the wealthy and corporations.