TulipTools Internet Business Owners and Online Sellers Community

Quote:Americans might pay more for DSL and cable modem bills starting November 1, thanks to politicians in the U.S. Congress who have yet to extend a federal moratorium limiting taxes on those services.

At the moment, a handful of bills in both chambers of Congress propose competing approaches, ranging from making the moratorium permanent to extending it for another four years. Earlier this summer, supporters and opponents of a permanent ban indicated they had reached a compromise that would involve extending the ban for another finite period of time and redefining the concept of Internet access to close perceived loopholes.

But no votes have happened, and the proposals are still stuck in the quagmire of congressional subcommittees...

Quote:The United States Senate has agreed upon a bill that would extend the ban on taxes on Internet services. So has the House of Representatives. However, they have not agreed on the same bill -- one extends the ban for seven years, the other for four. The current ban expires Nov. 1, and President Bush appears eager to sign an extension into law. Congress has until Thursday to hammer out their differences...

Quote:It came down to the wire, but President Bush signed into law a temporary ban on Internet taxes that had been set to expire yesterday.

The law, "Internet Tax Freedom Act Amendments Act of 2007," will add seven years to the life of the moratorium, which prohibits state and local government from taxing Internet access and electronic commerce. As a result, the act now will expire Nov. 1, 2014.

Retailers, ISPs, consumer groups, trade associations and lawmakers all hailed the bill's passage as a victory...