Ban on taxing Internet services expires today

[Nottingham]

http://www.chron.com/cs/CDA/ssistory.mpl/headline/tech/2195275

Ban on taxing Internet services expires today
Associated Press
WASHINGTON -- A five-year ban on taxing services that connect consumers to the Internet runs out today while a bid to make the prohibition permanent moves slowly through Congress.

The permanent ban's most ardent backers expected quick passage, but the bill has bogged down in a debate over the future of technology and the right of the federal government to tell states what to tax.

"This should have been a slam dunk for everyone interested in maintaining Internet fairness," said Pete Sepp, vice president of the National Taxpayers Union, a group that advocates for lower taxes and less government spending.

The ban has lapsed once already -- for 38 days in 2001 -- without a sudden explosion of taxes on e-mail and dial-up connections. Few expect this year's delay to end in new levies.

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