Internet Access Might Be Taxed For First Time

You have a friend request from Uncle Sugar.

Partial map of the Internet based on the January 15, 2005 data found on opte.org. Source: Matt Britt (CC)

Partial map of the Internet based on the January 15, 2005 data found on opte.org. Source: Matt Britt (CC)

The Internet Tax Freedom Act of 1998 is set to expire on Nov. 1, which means internet access and usage in the US could soon be taxed for the first time. Combined with efforts to standardize a sales tax on online purchases, these new taxes could mean a big hit on consumers. Congress could act to eliminate one or both taxes, but it is unlikely they will make any unpopular moves so close to the midterm elections.

Fortunately for Internet users, extension of the Internet Tax Freedom Act enjoys broad bipartisan support in Congress. However, according to the Wall Street Journal, these tax cuts are likely to get bundled with other internet taxes — specifically, state-level sales taxes on out-of-state online retailers (a Supreme Court decision had previously prohibited taxing online retailers without a presence in the state). And while the ITFA has bipartisan support, collecting sales taxes over the internet does not, especially in the Republican-controlled House. Combining the bills could force the issue of the sales tax by tacking it on to more widely supported legislation, but it could leave both issues stalled.

via Internet access may be taxed for first time – CSMonitor.com.

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  • erte4wt4etrg

    The parasites get everywhere, this town needs an enema!

  • InfvoCuernos

    They just need to set up toll booths at the on-ramp to the tubes! They’ve been trying to figure out a way to tax the internet almost as soon as Al Gore invented it.

  • DavidC

    If they start new fees or taxes, I’ll just quit the internet.

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