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FOLLOWING THE TELECOMMUNICATIONS INDUSTRY AND RELATED LEGAL TOPICS

Monday, October 29, 2007

Internet Taxes: Battle Lines are Drawn

One of the most hotly debated issues concerning telecommunications this Congressional term comes over whether a permanent ban on Internet taxes should be imposed. The current moratorium expires on November 1. Proponents of a permanent ban is necessary to encourage growth and deployment of the Internet and broadband facilities. Opponents argue that a permanent ban brings too many fiscal implications that harm local businesses who rely on the Internet. Legislators are stuck with the task of trying to strike a bi-partisan balance. The best proposal so far seems to be the recently passed Senate bill which extends the moratorium for seven years while lawmakers work towards a better understanding of Internet access. The bill, H.R. 3878 is now being considered in the House.

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