C. Tresenriter wrote:



(11-07) 10:47 PST WASHINGTON (AP) _

A drive to permanently ban Internet access taxes stopped dead in the
Senate on Friday, stuck in a clash over whether the legislation would
shear millions from the budgets of state and local governments.


The problem arose over the definition of "Internet access" -- services
that connect consumers to the Internet. The strongest proponents for a
permanent ban want to make sure that all access technologies -- from
phone lines to DSL to cable modems -- get equal freedom from taxation.


Opponents said the definition supporters crafted to incorporate new
technologies was too vague and could go too far -- eliminating taxes on
many types of Internet technologies and telecommunications delivered
through the Internet.


Several states currently collect taxes on Internet access services, and
opponents of the ban are worried that the legislation could limit this
revenue source.


"You could see billions and billions of dollars lost," said Sen. Byron
Dorgan, D-N.D. "Definitions are everything."


The two sides scrapped a planned Senate debate and instead began
negotiations, hoping to strike a compromise by next week.


The proponents of the permanent ban offered a compromise -- a temporary
extension of the ban for about 5 years, as long as the new bill treats
all Internet technologies equally.


"If you can have the set of definitions that ensure competitive
environment, that you don't favor one set of providers over another, I'm
willing to consider a very significant concession," said Sen. Ron Wyden,
D-Ore.



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There's a lot that we don't consider interent that would be affected, too. For instance, SWBell is planning on converting their telephone service to VoIP. As such, it would be exempt from taxes if the internet tax ban was in place. So, if you uses Sprint, you would have to pay tax, if you used SWBell, you wouldn't! That is what the debate is about, in ensuring competition. In addition, the internet tax ban in it's current form would effectively remove from taxation almost all kinds of communication networks and would thusly seriously affect the already dismal tax situation in many states.

Joeb



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