Bush Administration Urges Congress to Permanently Exempt Internet from Taxes

Bush Administration Urges Congress to Permanently Exempt Internet from Taxes

www.forbes.com

Senior Bush administration officials called on Congress to permanently exempt the Internet from access taxes or taxes on electronic commerce.

The Senate Commerce Committee is expected on Thursday to approve a bill that would extend the tax-free status of the Internet until 2011. Under current law, this status will expire at the end of 2007.

(visit the link for the full news article)

I doubt that congress would ever make this permanent, but I am pleased to see that it looks like the internet will be free from federal taxation for a few more years.



www.forbes.com
(visit the link for the full news article)

Is it currently being taxed in the US?

I think there are some states which tax internet sales within states, ie(Virginia business sells online, a virginia consumer buys from this business, then the state sales tax is required.) but it isn't federally taxed.

That is why I can't see them ever making the exemption permanent,

It is too big of a moneygrab and who knows how much federal revenue would be available should they decide to tap it.

Congress loves to tax, it's only a matter of time,

Probably another midnight session where they pass it late on a Friday night before the end of a session, then hightail it out of town before the news can report it.

There could be a roadblock if they try to tax the internet now, 2011 who knows....