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Bill Would Extend Moratorium on Internet Taxes


Rep. Eshoo

Representative Anna G. Eshoo, a Democrat from California, has introduced the Permanent Internet Tax Freedom Act of 2007 in the House of Representatives, seeking to make permanent the moratorium on internet access taxes and duplicative taxes on e-commerce, DMNews reports.

The moratorium on internet taxes was first established in 1998 to encourage online commerce, and in 2004 Congress extended until Nov. 1, 2007. The moratorium applies to several Internet services, including DSL (digital subscriber line), cable modem and other wireless transmission services.

"Passage of this legislation will ensure, once and for all, that the growth of internet access and e-commerce will not be hampered by unwarranted taxation," Rep. Eshoo said in a statement. The bill, H. 156, is the House's companion to a bill introduced in the Senate by Ron Wyden (D-OR), John McCain (R-AZ) and John Sununu (R-NH).

The House version would prohibit taxes on internet access, double-taxation of a product or service bought over the internet (for example, paying state taxes for the company's home state as well as the customer's), and discriminatory taxes that treat internet purchases differently from other types.

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