Internet Taxes a big issue in Washington DC:
This is something to watch closely. It is something that if it slips through the cracks, could very well wind up costing us taxpayers.
Tech groups also have asked Congress for a permanent ban on taxes unique to the Internet, but a Senate version of the Internet tax moratorium, passed in April, would only extend the moratorium for four years. House legislation, passed in September 2003, would permanently ban Internet access taxes and other taxes unique to the Internet, but a group of senators questioned whether the ban would limit states and local governments from levying taxes on telecommunications services as telecom companies move their traffic to IP (Internet Protocol). The moratorium expired last November, and if Congress fails to act, state legislatures may begin to look at taxing Internet access, said Joe Tasker, senior vice president and general counsel at the Information Technology Association of America (ITAA). "If Congress doesn't get it done in conference, it sends a signal to states," he added. "It's important for the Internet."