December 5, 2004 04:33 PM
Bush Signs Internet Tax, Special Ed Bills
Excerpt: State and local governments will be barred from taxing connections that link people to the Internet for the next three years under legislation signed Friday by President Bush.
WASHINGTON (AP) - State and local governments will be barred from taxing connections that link people to the Internet for the next three years under legislation signed Friday by President Bush.
The measure blocks taxation of all types of Internet connections, from traditional dial-up services to high-speed broadband lines.
"I cannot envision any time in the history of our country when it would make sense to be imposing taxes on broadband or the Internet, no matter where one is or who one may be," said Sen. George Allen, R-Va.
The new law, which remains in effect until Oct. 31, 2007, will help ensure that less-affluent Americans can afford Internet access, Allen said. Otherwise, Internet access taxes would average 18 percent, he said.
An earlier ban lapsed more than a year ago while lawmakers struggled to rewrite the regulations to include new technologies while ensuring that it wouldn't exempt all telecommunications activities from taxation.
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