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Senate Still To Vote On Net Tax Ban
by Mike Godfrey, for LawAndTax-News.com, Washington

30 October 2003

According to reports earlier this week, the US Senate has yet to schedule a vote on the Internet Tax Moratorium, despite the fact that it expires on Saturday. The House of Representatives last month passed a bill extending the net tax ban permanently, and increasing its reach to include all forms of internet access.

Following the House vote on September 17, a number of states, headed by the National Governors Association (NGA), expressed strong concern that the language contained within the legislation could exempt providers of telecommunications services from more than just sales tax in the future, taking in income, property, and various other business taxes, and costing the states up to $9 billion annually in lost revenue.

In a letter sent recently by the NGA to Senate leaders, the Association argued that:

"With little time to negotiate an appropriate definition of internet access, we encourage you to support a simple, temporary extension of current law to allow Congress, industry, and state and local governments time to fashion a permanent moratorium that is thoughtful and fair."

Speaking to Internetnews.com, Chris Fitzgerald, spokesman for Senator Ron Wyden (D-OR), a sponsor of the Senate bill supporting a permanent ban, announced that:

"Senator Wyden is certainly pressing for it to come up on the floor this week." However, he added that: "The floor schedule is a matter for leadership to decide."

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