Unless you've been paying close attention, you might not have noticed that the Internet Tax Freedom Act is about to expire on Nov. 1, and unless Congress does something about it, this could result in a whole new spate of taxes from local or state authorities on Internet access.
What could this mean to you and your organization? Read the details here. Basically, the Act protects us against anyone putting taxes on Internet access or usage. Predictably, however, unscrupulous politicians (are there any other kind?) have put a time limit on the moratorium. That time limit has run out before, with extensions passed. But many, including myself, wonder why the moratorium is not made permanent.
Most people seem to agree that not taxing the Internet is a good idea, but there is strong disagreement from those who fear that a permanent ban would allow any Internet purchase to be free of state and local sales taxes. Poppycock! A new bill could specifically set forth that the ban is on access and usage taxes, not on legitimate sales taxes. Certainly the lawyers could work that out (although they might rather fight it out in court and pull in big fees--but that's another topic).
Congress has never met a tax it didn't like, so don't discount the possibility that it will choose to let the moratorium end. It doesn't seem likely that they will do that, however, because allowing taxes on Internet usage could be a huge drag on commerce in a U.S. economy that currently features a steadily-declining dollar and troubled real estate and mortgage industries. And even though most of our Congresspeople are more than capable of hurting the U.S. economy, they would still be wary of being blamed for further decline--and thus, not re-elected.
The most likely scenario is another temporary extension, and that is a shame, because it leaves the door open for for another effort to fleece the consumer and to strap ankle weights to an economy that is struggling to get up to speed. It puts one in mind of the bridge from the Beatles song "Taxman.":
(if you drive a car,) - I’ll tax the street;
(if you try to sit,) - I’ll tax your seat;
(if you get too cold,) - I’ll tax the heat;
(if you take a walk,) - I'll tax your feet.
So what's your take on the Internet tax moratorium? Share your opinions here--especially if you are a member of Congress!
Comments (1)
Can you imagine what the cost of a teenager would be to the household? We would have to lock the computer. The other option would be bankruptcy. I am all for properly funding our government, but not subsidizing the waste. When they cut the waste, if they still have a deficit, then I may support this tax.
Great article.
Posted by Craig Dolan | October 10, 2007 11:42 AM
Posted on October 10, 2007 11:42