House Passes Internet Tax Ban 426
computerlady writes "InfoWorld reports that the House of Representatives today voted a permanent ban on 'levying taxes unique to the Internet.' The Internet Tax Nondiscrimination Act would permanently prohibit taxing jurisdictions in the U.S. from levying such taxes as e-mail taxes, bandwidth taxes, or bit taxes. To become law, the bill would have to pass the U.S. Senate and be signed by President Bush. The Senate Commerce, Science and Transportation Committee approved its version of the bill July 31, and its next stop is the full Senate."
States Rights (Score:5, Informative)
No one will come knock on your door if you don't pay, but it's nice to have that weigh on your mind, you tax-evading thief.
Re:States Rights (Score:5, Informative)
Unique to the internet. that is whats important here. we all know that sales tax is long overdue on the internet, it will come into effect sooner or later.
Re:States Rights (Score:2, Insightful)
Also, there has been a ban on interstate sales tax in many jurisdictions for many, many years. If you order something by mail from Oregon and you live in New Jersey, you don't pay sales tax. So what makes you think an Internet sales tax is j
Re:States Rights (Score:3, Informative)
In most states, you do have to pay sales tax if you order something from another state. The company isn't required to charge the tax. You are supposed to get an additional form from the state and declare your purchases yourself.
the internet tollbooth (Score:2)
of course the world is just waking up to the other party (which effectively has succeeded in) erecting a toll booth on the net, and that would be microsloth and their IE tax, which is built into their winbloze tax.
Re:States Rights (Score:4, Interesting)
Here in the European Union, it arrived as of July 1st 2003. Purchases made online within the EU are liable to VAT (Value Added Tax, the EU version of Sales Tax), even if the supplier of the goods is based and shipping from outside the EU.
Some details here [pcworld.com].
New Hampshire (Score:2)
Re:States Rights (Score:3, Interesting)
The out of state companies just aren't collecting sales tax for those states because 1) they don't have to, and 2) because it would be an accounting nightmare- especially for states that have different or additional sales tax for different counties (like NY and FL). I know for a fact
Choice quote... (Score:5, Insightful)
Oh well, can't complain too much, at least it's positive news. I just though it made good spin!
Re:Choice quote... (Score:4, Insightful)
Because if you're a company that has something to do with internet services, and there were rumours of a 'net tax, you'd probably stop some of your initiatives and hoard money as a contingency fund.
When the quote says 'certainty', that means a lot to any risk-conscious company. If you have a risk mitigated or removed, you feel safer in going ahead with an initiative like setting up broadband, etc.
Finally, a step in the right direction! (Score:5, Insightful)
Of course, socialists and Bush-bashers are going to hate this on principal, but I think most of us can see the positive conotations such a law has.
Re:Finally, a step in the right direction! (Score:5, Insightful)
You're in luck. I think "Anything to keep money in my pocket" is the Bush campaign slogan for '04.
The reality of a law like this is that it's a PR move. The only thing that can legitmately reduce the tax burden is a cut in spending. Trust me, you'll end up paying that Bush deficit eventually, no matter how sweet a nice fat refund check is now.
You: Yay! Not Internet Tax
Government: Your Walrus pacifier tax is due.
Re:Finally, a step in the right direction! (Score:2)
our deficit just is not that big of a deal in the economic sense, its just low-hanging fruit in the political sense because it's a big number when unqualified.
our unemployment, overtime, privacy laws, and foreign policies however are big deals.
please keep proper perspective when criticizing, and never trust what even the mass
Re:Finally, a step in the right direction! (Score:2)
the deficit as a percentage of GDP (~4%) is not unreasonable
Without wanting to initiate a professional discussion on economics (I don't have to much of a clue here, and sometimes I have the impression that nobody does), I would just like to point out that the upper deficit limit as imposed by the EU council is 2 percent. This might be right, it might be wrong, some countries (such as France and Germany, and probably Italy too) are having a larger deficit - but at least Europe is aiming to not exceed thos
Re:Finally, a step in the right direction! (Score:2)
the kyoto protocol (yes i read it) is another misrepresented problem. the reason the US did not sign the treaty was that w
Re:Finally, a step in the right direction! (Score:3, Insightful)
Yeah the only problem is, this was voted by the House of Rep. Bush hasn't seen the proposal yet.
Re:Finally, a step in the right direction! (Score:3, Insightful)
Not necessarily true. The tax burden can be minimized by a deficit. Here's how:
1) If there is no deficit, spending temptations explode, and expensive spending proposals will be pushed. If there is a deficit, it is less likely that spending programs will be passed, because there is a legitimate cover in "We can't fee
Re:Finally, a step in the right direction! (Score:4, Insightful)
Does anyone else remember Bush using enormous budget surplus predictions as justification for a tax cut?
Re:Finally, a step in the right direction! (Score:2)
Europe is looking more and more attractive. You actually GET something in return for your taxes there.
Re:Finally, a step in the right direction! (Score:4, Informative)
In a word, no we don't. Not if by "most of us" you mean "most US taxpayers". For a decently readable account of this and other economic "facts", there's a piece in the NY Times [nytimes.com] (free registration blah blah).
Re:Finally, a step in the right direction! (Score:2)
Re:Finally, a step in the right direction! (Score:4, Funny)
Don't forget the aircraft carrier... (Score:4, Insightful)
We should probably shift more of the money from excessive stealth fighters (there are no dogfights anymore, we just need a first wave to take out anti-aircraft response) towards more troops and better equipment for them.
However, if you are going to talk about the American military, it's our aircraft carriers that let us rule the world. That is how we can project power across the globe. It let's us send air power anywhere.
I look at things in Europe and the US the way children and adults see life. Children see the next purchase as a video game, and that their parents should pay for it. Adult understand that they need to work hard, earn a living, and pay for things like food and shelter.
You expect others to pay for your desires, we understand that we need to pay our own way.
You would think that 50 years of the US subsidizing Europes existance, plus the thousand year head start on civilization would put your standard of living tremendously beyond our own. However, the opposite is the case. Somehow the side affect of expecting others to pay for your lifestyle has resulting in productivity hits that are more significant than the savings from having us subsidize your defense.
Money has to be made, by producing goods and services desired. Anything granted by the government is a hand-out from money taken at gun point from those that produce wealth. Money is an indicator of productivity, nothing more.
Alex
Re:Don't forget the aircraft carrier... (Score:2)
You would think that 50 years of the US subsidizing Europes existance, plus the thousand year head start on civilization would put your standard of living tremendously beyond our own.
Ummm...the USA didn't spring out of fresh air. It's an offshoot of European colonists and numerous waves of immigrants (Irish, Jewish, Italian, Mexican &c) The 'headstart' comment is laughable.
Anything granted by the government is a hand-out from money taken at gun point from those that produce wealth.
There is a pl
Re:Finally, a step in the right direction! (Score:3, Insightful)
I disagree. Just look at all of the additional value we get here in the US for our tax dollar...
Re:Finally, a step in the right direction! (Score:3, Interesting)
In a country where we roughly pay an average of 1/3 of our salaries to variuos governmental entities.
It is my impression that you are actually quite lucky. In the country I currently live in (Italy) a whopping 43% gets deducted from my salary even before I get it. Of the other 57% percent, I probably spend half for a living, where 20% VAT is applied - therefore I pay almost 50% of taxes.
<rant>And what makes me really sick is to see how the money does not get used, but is merely vanishing in all ki
Re:Finally, a step in the right direction! (Score:2)
I learned in economics class that if x then taxes should go up and if y taxes should go down. I want a government that took economics class. They should change the taxes to match the curre
Re:Finally, a step in the right direction! (Score:4, Insightful)
You say that like that's a bad thing. Whatever happened to the concept of "limited government"?
"We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America."
While this famous quote isn't a comprehensive examination of our government's structure, it is a decent summation of what should be the boundaries of our government's role in our lives.
Nowhere in that quote is mentioned a guarantee of prosperity, nor does it speak of a responsibility of the government (through taxpayers) to provide for those who can't or won't provide for themselves.
Quite simply, the government was never intended to function as a means to redistribute the wealth of its citizens; to divert money from one group of individuals to another.
"I learned in economics class that if x then taxes should go up and if y taxes should go down. I want a government that took economics class."
I'm 100% in agreement with you there. That's one of my beefs with the current administration.
Re:Finally, a step in the right direction! (Score:2)
Re:Finally, a step in the right direction! (Score:2)
Re:Finally, a step in the right direction! (Score:2)
Sorry to disapoint you (Score:2, Insightful)
Sorry, but I am most certainly a Bush-basher, and I have been called a socialist before (I don't consider myself to be one, but I do share many of their ideals).
I have nothing against a law forcing consistancy in the application of taxation across diferent sales channels. In fact I think it is a great idea.
A real socialist should be against sales taxes all t
Re:Sorry to disapoint you (Score:2)
Have you ever tried to feed, clothe, and house yourself for $8,000 a year? I would certainly claim that the person making 10K would endure an increadable hardship to pay 2K a year in taxes, where for someone making 10M, 2M is not that hard to come up with.
Is it fair? Maybe not (I think it is, but I can und
Re:Finally, a step in the right direction! (Score:2)
There are a few idiots who keep on parroting "cutting taxes increases tax revenues". If that is true, then cutting taxes to zero will create huge revenues. In fact, the government should levy no taxes and then give money away! Hopefully, it is obvious that "cutting taxes increases tax revenues" only works if
Re:Finally, a step in the right direction! (Score:2)
Talk about Flaimbait! As well as just being plain wrong.
As an Official Bush Hater (tm), I find this to be welcome news. Any socialists care to comment?
Prohibited taxation? (Score:2)
Can you remember the last time that Congress actually prohibited a form of taxation?
Well, Congress no. America, yes.
Yeah, some time around 1773 in Boston harbor... the last time I checked. They also did a decent job all the way up to 1787 as well.
Oh, and the 1860's were bad for individual state taxation. But we fixed that too.
Re:Finally, a step in the right direction! (Score:4, Informative)
Poll tax. The Twenty Fourth Amendment was passed by Congress on August 27, 1962, and it was ratified by the several States in early 1964.
GF.
Re:Finally, a step in the right direction! (Score:3, Insightful)
Hey! I'm a Bush-basher, and I think this is a great law. It's what we've all been saying on slashdot for years: don't write new laws for the internet, reuse existing ones.
How could they legally tax those products anyways? (Score:3, Interesting)
Finally... (Score:3, Interesting)
BUT on the other side of the equation a part of me would not mind paying an internet tax on emails, if it would help in the battle against spam and junk mailings...although one may assume that the senders have deep pockets.
So in this end this really resolves nothing for me. Execept for a link I can point to when I get the next barage of "Internet Email Tax!!!" emails.
SPAMMERs aren't THAT rich... (Score:2)
If there was even a 1/10th cent tax on each email SPAM would drop dramatically.
Think about it, you've seen the advertisement "Read 200 million people instantly" at 1/10th cent that means EACH single SPAM will cost you $200,000
Now the market for penis enlargement could be big... but I'm betting it isn't that big (pun intended).
Why? (Score:4, Insightful)
Now, something like a tax per email would of course just be dumb, but would a fixed household-based tax on broadband be dumb? Especially bearing in mind that the gov. needs to police the internet to a certain extent (to those that say they don't, get back to me when your Mom gets their banking details stolen or your friend gets defrauded by a mock ebay site).
Re:Why? (Score:2)
Why do you think? Do you think this has to do with preserving consumer interests and protecting your rights?
Pffft. Don't be ridiculous. It's called 'special interests'. Anyone notice that the nation's largest media conglomerate is also th
Re:Why? (Score:4, Insightful)
What a internet tax would be is a tax not on your vacuum cleaner but on how many times you hover with it as well.
An email tax would be a double tax. First you pay for the bandwidth, then for the use of that bandwidth? Like charging me BTW for a loaf of bread, butter, and toppings. Then charging me a tax when I make a sandwich out of it and eat it myself.
Re:Why? (Score:2)
Re:Why? (Score:2)
Just what we always needed, another regressive tax.
If you want to tax anything on the Internet, how about taxing the number of frames in a moving
Re:Why? (Score:3, Insightful)
I'm glad someone else is questioning this Bill ... the devil's advocate in me has to find the bad points ;)
In general we pay taxes where the state has an interest in providing or overseeing infrastructure. The principle of special taxes is to impose a tax on the use of infrastructure that isn't essential or not everyone uses.
In most countries income tax pays for government in general, the military, social security, education, and at least partially funds critical instructure like electricity, water and
Whee (Score:2, Informative)
Comment removed (Score:5, Insightful)
Re:missed opportunity on SPAM fight (Score:3, Insightful)
Re:missed opportunity on SPAM fight (Score:4, Insightful)
Yes, because as we know most of the spam we get comes from the USA. Really tho, that's just a stupid idea. Even for fighting USA-based spammers.
Go stand in the corner!
Re:missed opportunity on SPAM fight (Score:2)
And while those still exist, they are not the majority.
And how are the taxes measured? Is each originating site responsible for tracking it's outgoing mail or does everyone track everyone and some government office try to sort this mess out?
Would the income from such a tax even remotely cover the expenses of administrating it?
Or is there a much more effective solution in the $1-$5 per user per month range?
Re:missed opportunity on SPAM fight (Score:2)
Ahh, but someone is selling something via. SPAM. And the seller would get taxed on their penis enlargement pills. You don't think that they import these?
But I'd rather see a ban on spam rather than a tax. The ban could have huge penalties, which the seller would pay, even if you can't catch the spammer. Putting the sellers out of business would reduce spammers to only selling their
Re:missed opportunity on SPAM fight (Score:2)
As much as I agree with you, I have already had long and detailed debates about these subjects. With your proposal, there are a few "problems".
1. How do you regulate it? I receive 100 messag
Fighting Spam with an e-mail tax... (Score:2)
You tax something, you get less of it. Taxing the internet would mean slowing down growth and innovation (real innovation, not the Microsoft kind). Moreover, once passed, that tax will NEVER be repealed. Besides, how are you going to collect that tax from all those people who are already breaking laws by forging headers, and on all those offshore s
Re:missed opportunity on SPAM fight (Score:2)
If the government was able to see all the email someone sends (that in itself is a big bad!), then why would you bother taxing spam when you could just ban it outright?
Re:missed opportunity on SPAM fight (Score:3, Funny)
Re:missed opportunity on SPAM fight (Score:2)
1.) Valid Email Accounts are tied to a database of other Email addresses. These addresses can send messages to the account holder free of charge.
1a.) Entries in the database (adding names, removing names) require a cryptographic key from the account holder (done blind so as not to overly confuse Granny who uses AOL to talk to her nine grandkids)
2.) When sending a message to an account the receiving system ch
Tax not always bad... (Score:2, Funny)
Re:Tax not always bad... (Score:2)
Why don't they do something useful... (Score:2, Interesting)
Seriously. Companies built the network just like Ma bell did and when you creat a vital resource you must give that resource to the people or face hell, like Ma bell did. It isn't as bad as it was for broadband but if the deregulation continues as it is, it'll get that bad.
If they REALLY want to increase the growth of broadband, how
Re:Why don't they do something useful... (Score:3)
What are you talking about. Let's add up some of the debt these companies fed on in the 90's.
AT&T owes about $70B (less now after divesting cable)
WorldCom owes at least $40B
Sprint owes at least $30B
Qwest owes at least $40B
AOL has close to $40B in long term debt.
Then there are the countless other little guys. the Global Crossings, Frontier Ne
Damn Republicans.... (Score:4, Funny)
Re:Damn Republicans.... (Score:2)
We like this don't we?
Actually, I'd prefer to keep the federal government out of the affairs of the states. If the states want to tax internet access, they should be able to do so.
Re:Damn Republicans.... (Score:3, Interesting)
Also, many transmission lines follow along railroad lines and therefore come under federal jurisdiction under the Trans.Railroad act.
Short Sited decison? (Score:4, Interesting)
If you see tax as a way of re distributing wealth to help the less well off then you could conceivably charge a bandwidth tax and put the money into public net access. I know not everyone sees tax this way but it dosn't seem like that bad an idea to me
It could also be used to help fund Internet monitoring, which I know no one likes but the government is going to do it anyway so why shouldn't people who use more bandwidth pay a greater share of the cost?
Bad Idea. (Score:2)
Why are you trying to create a need for an internet tax? I have a better idea: let me keep my money and do what I want with it, rather than letting the government spend it in ways I'll have no control over.
Re:Short Sited decison? (Score:2)
I have to say that your post, along with numerous others, typifies the exact attitude that is allowing politicians to continually eat away at American paychecks. We are continually saying (we being Americans in general) to the government how much we hate taxes, but please, oh PLEASE, fix our problems. Give us more free stuff.
Except that its not free. It IS redistribution of wealth, or better yet, legalized theft. Yep that's right, you have here a believer in the idea of capitalism and personal li
Stuipd(TM) Idea! (Score:2)
Considering that over 50% of the U.S. population already has Internet access(since two years ago!), I think your solution is in need of a problem.
Would Taxing Be Feasable? (Score:3, Insightful)
Would putting a tax on internet transactions even be feasable? Granted, it would be relatively easy to track sales from huge companies like Amazon, but what about the individual selling stuff off of their own website eBay style? You would literally have to track down every single website that's selling something and make sure they're obeying the tax laws. Also, what about sites that are international? Would these laws be enforcable for us buying things from other countries or people in other countries buying things from us? The internet is a global entity, not just in the USA. I can see taxing e-mails, but I'm not sure how you would effectively tax online sales. Please feel free to explain to me how it could work, because I am interested.
Does anyone know if this passes if (Score:2)
Or would this affect state taxation at all?
By Striking down the Bill....... (Score:2)
It also potentially brings it up as possibly a major news media topic....
Prohibits taxing access, not e-commerce (Score:4, Informative)
A good law. I think the politicians should keep their grubby hands off internet access.
This is a great day for democracy and breasts. (Score:3, Funny)
Re:This is a great day for democracy and breasts. (Score:2)
but what about VAT (Score:2, Interesting)
Re:but what about VAT (Score:2)
PRICE: USA $20.00 EU $25.00 ***
*** EU price includes VAT Tax, plus our EU VAT Tax Handling Fee
It's not "permanant" at all (Score:2, Insightful)
Leaves door open for Federal Tax (Score:3, Insightful)
It looks to me that this is just a little bit of staging for a future Federal tax on internet usage, perhaps interlocked with a Federal internet licensing/watchdog effort pushed through under the guise of "Homeland Security".
The rhetoric would go something like "...CyberSpace has become such an integral part of this nation's economy that it is the job of the Federal Government to protect it from terroristic disruption. In order to fund this hightened level of US Internet security, a Federal Tax will be leveyed against ..." This would also effectively allow the tax payer to pay for the high speed internet of not only the Federal government, but also State governments, who would of course be exempt from the Federal tax.
Of course maybe I'm just paranoid ... I sure hope so.
New Taxes? (Score:2, Funny)
I just got this email saying the bell company was about to put a $50 per month tax on all modems. We must write congress at once to stop this. Most of us can afford to call BBSes if this goes through so write a letter now!
Is VoIP Unique to the Internet? (Score:4, Interesting)
Interesting (Score:2)
But if we did have a written constitution, I'd be pushing for a clause along the lines that all means to the same end were equally valid, and any future invention that accomplishes the same ends as an existing invention should not be given any special treatment unless there were compelling reasons beyond mere novelty.
Good Job! (Score:2)
No taxes - yet. (Score:3, Funny)
The "exemption" will run out and it'll be a question of proactively passing a ban on taxes again. That won't happen forever.
In other news... (Score:3, Funny)
Email Tax (Score:4, Interesting)
DISCLAIMER: I am not trying to be flamebait here, this is my honest opinion:
I'm torn about the idea of an email tax. While in general I don't like the idea too much, it does occur to me that this might be the only way of dramatically reducing spam.
Look at it this way: Even a wicked-busy web maven likely sends less than 1000 emails a day outside of their own company LAN (with a few exceptions I realise. Individuals likely send less than 100 per day in general.
So, say you put a tax, to be administered by your ISP on each email, of say 0.1 cents per email. Big Business guy gets charged $1/day, home user $0.10 per day. By no means big money. Johny McSuperSpammer, however, who sends out 10 million emails every day, gets a handly little bill for $1000. Kind of changes the economics of his penis enlarger ads.
Like I say, I'm not a huge fan of paying more, but it does seem like making emails cost per message sent might be the best/easiet/only way to dramatically reduce spam.
Furthermore (ideally), to make up for the cost, you ISP could take $5 per month off your bill, to make up for the extra you're spending to send email. They still make money, because of the tax, the financial hit for you is minimal, but the spammers get hosed.
Re:Email Tax (Score:3, Insightful)
What happens when spam kingpins [slashdot.org] in America outsource to people in other countries that do not respect US law to take the blame for spamming?
What this really means... (Score:3, Informative)
What this bill isn't, is a moratorium on taxation of Internet services (such as long distance/VoIP, catalog/retail shopping, web hosting, etc). The House have only said that no state may tax access to these services.
Re:Isn't this a state thing? (Score:5, Informative)
Re:Isn't this a state thing? (Score:2)
Re:Isn't this a state thing? (Score:2)
you forgot to add
Interstate is not Intrastate (Score:2)
Re:Isn't this a state thing? (Score:3, Informative)
Net
Re:It isn't about Commerce... (Score:2, Insightful)
Which makes it even more of a per state issue.
In either case it would be highly destructive to the Florida economy and any other state that persues such a course of action without getting the rest of the states to add the same exact tax across the board.
So it's now the responsibility of the federal governemtn to stop state
Re:Keystrokes (Score:4, Funny)
By the inch?
Re:Problem (Score:3, Insightful)
Re:cool (Score:2, Insightful)
"What?! They voted for something I want? They're only doing it to get re-elected!"
Re:cool (Score:3, Funny)
... until your internet access goes down.
Re:A good move (Score:2)
I'M JUST A BILL (Score:3, Funny)
Please mod this up for nostalgia and educational value. You know you watched this as a kid. Represent for the Nintendo generation!
Boy: Whew! You sure gotta climb a lot of steps to get to this Capitol Building here in Washington. But I wonder who that sad little scrap of paper is?
I'm just a bill.
Yes, I'm only a bill.
And I'm sitting here on Capitol Hill.
Well, it's a long, long journey
To the capital city.
It's a long, long wait
While I'm sitting in com