November 17, 2004 11:02 PM
Moratorium On Web Tax Advances
Excerpt: Congress yesterday cleared the way to keep access to the Internet largely free from taxes for the next three years, breaking a year-long deadlock. In a compromise, the Senate tweaked provisions of a bill it passed in April that reflected concerns by state and local governments that they could lose billions of dollars in tax revenue as more and more voice communication migrates to the Internet.
Congress yesterday cleared the way to keep access to the Internet largely free from taxes for the next three years, breaking a year-long deadlock.
In a compromise, the Senate tweaked provisions of a bill it passed in April that reflected concerns by state and local governments that they could lose billions of dollars in tax revenue as more and more voice communication migrates to the Internet.
The House, which had approved a broader, permanent tax ban last year, agreed to replace it with the Senate version, according to a spokesman for Rep. Christopher Cox (R-Calif.), one of the House bill's sponsors. He said he expects the House to vote on the measure today, and the White House has already signaled that President Bush would sign it.
"The Internet makes American workers and companies more productive," Cox said in a statement. "By protecting consumers from new taxes, the new law will keep Internet access affordable."
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