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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).