September 26, 2007

The Taxman Cometh

I try to keep partisan politics out of my writing for this blog, but the press has been horribly negligent in covering the fact that the Internet Tax Ban will EXPIRE on November 1st. There has been nothing happening in the Congress other that a lot of finger pointing, lip service and political nonsense on both sides of the issue. To put it simply, by doing nothing the Congress will enable every imaginable goverment entity to begin taxing your internet access.

Last Thursday, prodded by a flurry of GOP press conferences, Senate Majority Leader Harry Reid issued a two-line statement saying that he had “every expectation that Congress will approve a continuation of the moratorium.” Not exactly a passionate call to protect America’s 213 million Internet users. Commerce Chairman Daniel Inouye added later that he’s “hopeful” his committee can move a bill this week and he has scheduled a Thursday markup. (from the Wall Street Journal)

In the US Senate, markups and discussions go on endlessly for months and years. Harry Reid, Daniel Inouye and most members of the Democrat party have NEVER been opponents of new taxes. In this case its very easy for them to blame the opposing party for delaying the extension or making permanent of the ban, and allowing it to expire. Before the political lemmings on both sides get worked up, I have a lot of ill will toward Republicans too, but they are largely on the correct side of this isssue, so this time they get a pass.

Many are politically split on whether we need a national broadband policy, but everyone seems in uniform agreement in their hatred of taxation (except the States, that is). Companies like Google and Verizon, who’ve been at each other’s throats over network neutrality and the 700Mhz wireless broadband auction, are congenial bedfellows on this issue. Says Google on their policy blog:

“Keeping Internet access tax-free is also another way that government can help further the growth of the web to all corners of the U.S. At a time when American policymakers are working to increase broadband penetration rates and improve the quality of broadband services to consumers, we believe that increasing barriers to access — whether they are created by the government or by the private sector — will only frustrate our common goal of greater access to better broadband for all consumers.”

The Congressional debate over making the Internet access tax ban permanent has been painfully slow going, but at least one Republican lawmaker believes they have enough votes to kill Internet access taxes forever. If Congress fails to act by November 1, the current ban will expire, leaving States free to tax your broadband connection and add to your monthly bill. (from Broadband Reports)

I urge you to first take a long hard look the endless nickel and dime taxes on your telephone, cell phone, cable TV or electric utility bill. This could also be happening to you internet access bill. Regardless of the political affiliation of your elected representative, please tell them how you feel about this.

You can find your representatives and email them via the House of Representatives site and the US Senate site.

Filed under Legislation / Regulation, Municipalities by admin