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Net tax fight resumes in Congress; senator warns of e-mail tax
Here's Sen. Enzi's bill advancing Net sales taxes:
Three bills dealing with Net access taxes:
And a podcast I and my colleague did with former House Majority Leader
Dick Armey on this topic:
And the e-mail tax is back! No, it's not bill 602P. See below.
Net taxes could arrive by this fall
Wed May 23 23:01:07 PDT 2007
The era of tax-free e-mail, Internet shopping and broadband connections
could end this fall, if recent proposals in the U.S. Congress prove
State and local governments this week resumed a push to lobby Congress
for far-reaching changes on two different fronts: gaining the ability to
impose sales taxes on Net shopping, and being able to levy new monthly
taxes on DSL and other connections. One senator is even predicting taxes
At the moment, states and municipalities are frequently barred by
federal law from collecting both access and sales taxes. But they're
hoping that their new lobbying effort, coordinated by groups including
the National Governors Association, will pay off by permitting them to
collect billions of dollars in new revenue by next year.
If that doesn't happen, other taxes may zoom upward instead, warned Sen.
Michael Enzi, a Wyoming Republican, at a Senate hearing on Wednesday.
"Are we implicitly blessing a situation where states are forced to raise
other taxes, such as income or property taxes, to offset the growing
loss of sales tax revenue?" Enzi said. "I want to avoid that."
A flurry of proposals that pro-tax advocates advanced this week push in
that direction. On Tuesday, Enzi introduced a bill that would usher in
mandatory sales tax collection for Internet purchases. Second, during a
House of Representatives hearing the same day, politicians weighed
whether to let a temporary ban on Net access taxes lapse when it expires
on November 1. A House backer of another pro-sales tax bill said this
week to expect a final version by July.
Posted by Declan McCullagh on May 24, 2007
in category economics
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