Senate Extends Internet Tax Ban for Seven Years

By October 25, 2007Taxation

From Sens. Carper and Alexander:

U.S. Sens. Tom Carper (D-DE) and Lamar Alexander (R-TN) praised the agreement reached by the Senate Thursday night that extends for seven years the moratorium on state and local taxes on Internet access. The tax ban – first passed in 1998 and last updated in 2004 – is set to expire on Nov. 1.

They said, “This agreement is a common sense victory both for internet users and for state and local governments. It continues the moratorium on Internet taxation, avoids unfunded federal mandates on states and cities, updates the definition of Internet access, and allows Congress to revisit the issue after seven years.”

In May, Carper and Alexander introduced S. 1453, a bill to update the definition of Internet access and extend the Internet tax moratorium for four years.

The House went for a four-year extension, and the Senate for seven. Now, normal political compromise math means a five-and-a-half-year extension. But maybe it works like 4 to the 7th power= 16,384 years. We can live with that, although we’d still prefer a permanent ban.

(Hat tip: Kathryn Jean Lopez, NRO)

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