Monday, October 20, 2003

Nov 1 deadline for internet access tax ban looming...

Hill Hurrying to Renew Ban on Web-Access Taxes (TechNews.com)

the current moratorium on internet access taxes is slated to end unless this bill passes, but there appear to be some problems with the wording.

I'm not a fan of access taxes...especially because the internet is not as ubiquitous as it could be. there are too many people who cannot afford computers, let alone the cost of dsl or broadband, and the additional tax burden would make it even more difficult for internet to reach poorer households.

but, I also can see the revenue side of things, in that a small tax would be incorporated in the overall cost of service, and most people with internet access could afford to pay $5 per month (or maybe even less). with most state and local tax revenues declining due to the poor economy, it may be a lifeline to keep things afloat.

however, there is the good point that we already pay taxes on our phone line, and to tax internet access which is obtained through the phone line would essentially amount to double-taxation.

I must admit that my taxes on my phone bill are larger than the cost of my telephone calls, so I definitely don't want to pay the taxes twice just because I use my dsl connection more than my telephone service coming through the same line.

so, I think all things considered, it is more important for now to continue the moratorium, even despite the revenue producing problems facing most states and localities.

besides, there seems to be an equity problem in that the taxes would depend on which way you access the internet. would wireless users have to pay the taxes twice? what about dsl users who have access through their phone service? and then there is the cable/broadband access, which is also already taxed. are the taxes going to be equal for all types of access? should dsl/broadband users pay more because their data travels faster than the dial-up? or vice versa?

I should probably read the proposed bill to get a clearer idea of what is contemplated should the moratorium sunset...

aaahhh...if I only had the time for more interesting research projects than looking up 1944 cases in the Fifth Decennial Digest (aaargh! I spent way too many hours today in the library dusting off books that haven't been crack in nearly a century!)



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