Senators Propose Temporary Net Tax Fix

by Glen Shapiro, LawAndTax-News.com, New York

13 February 2004

A bipartisan group of US Senators have put forward a proposal designed to end the stalemate over the ban on the taxation of internet access.

Senators Lamar Alexander (R-Tennessee), Kay Bailey Hutchison (R-Texas), Tom Carper (D-Delaware) and Dianne Feinstein (D-California) on Wednesday put forward plans for a two year extension of a moratorium on state and local taxes on internet access, in response to an earlier bill sponsored by Senators Ron Wyden (D-Oregon) and George Allen (R-Virginia) which would impose a permanent ban on such levies.

Although the bill permanently extending the net tax moratorium (which expired in November 2003) passed the House last year, it stalled in the Senate following concerns that it was too broad, and would deprive state authorities of more than $11 billion in revenue per year.

Speaking at a news conference on Wednesday with regard to the bill that he is co-sponsoring, Senator Alexander explained that:

"It's a temporary solution. The other position is permanent confusion that could cost state and local governments billions and billions of dollars."

Recommended