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The Return of the web tax. Be very afraid.
Hotair ^ | 05/10/2014 | Jazz Shaw

Posted on 05/10/2014 10:20:50 AM PDT by SeekAndFind

It’s nice to have someone looking out for you, even if you didn’t know that you had a guardian angel on your shoulder. For the majority of you, since you’re using some form of internet access to read this, you’ve been protected for the last fifteen years by the Internet Tax Freedom Act. It prevents most state and local governments from taxing your internet access fees. But unless Congress figures out something in the near future, that could all be coming to an end on November 1st.

Millions of Americans could be threatened with new state taxes on their Internet access this fall, as Congress struggles with how to extend an expiring moratorium on such levies.

The 15-year-old Internet Tax Freedom Act prevents most states and local governments from taxing access. The moratorium enjoys widespread bipartisan support in Congress.

Broad support, eh? So what’s the problem?

The tax reprieve, however, is set to expire on Nov. 1, and so far, lawmakers have taken few concrete steps to re-enact it as they debate whether to combine it with a separate, more controversial bill. That measure would allow states to collect sales tax from out-of-state online merchants.

Proponents hope that combining the two bills will increase pressure on Congress to negotiate a compromise on the long-delayed online sales-tax legislation.

“I think enough interested parties would insist that if we’re going to pass that [Internet-access tax moratorium], this other component might be attached to it,” said Rep. Jason Chaffetz (R., Utah), who is leading a House effort to reach a compromise on the sales-tax bill. He added: “To think the first would move unattached is fantasy land at this point.”

As so often happens in the complicated world of political thinking, I’m confused. How is a bipartisan move to extend a tax moratorium “fantasy land” unless it’s attached to … a tax? Who comprises this large contingent of people pushing to tax internet access… the Amish?

We’ve had more than a few lengthy discussions here about the MFA. And while I understand the issues being raised by brick and mortar sellers on this score, many readers here have provided ample arguments which raise serious concerns about doing it. But the debate currently taking place seems to have little to do with the bone we’ve been chewing these past few years. Reading through the quotes in this article, not only from Chaffetz, but from Dick Durbin and others, it’s difficult to see how this is an argument which makes the case of the MFA stronger. Instead, it seems like a case of taking a widely popular program – the current exemption – and lashing it to the MFA without offering anything balancing in return.

Nice tax exemption you’ve got there. Be a shame to see anything happen to it.

To me, it seems as if these are two unrelated proposals which each deserve a vote and should stand or fall on their own merits. Tying them together takes on the air of political skullduggery. And a renewal of the Internet Tax Freedom Act would pass on its own fairly easily, particularly in an election year. In fact, there’s already a bill waiting in the wings to do just that, and do so permanently. It’s been waiting for action since last year.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: internet; tax; taxes; webtax

1 posted on 05/10/2014 10:20:50 AM PDT by SeekAndFind
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To: SeekAndFind

They (gov’t) will never give up on taxing the internet, after that the U.N. will want a world internet tax, and after that there will be very little internet access, mission accomplished.


2 posted on 05/10/2014 10:45:51 AM PDT by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: SeekAndFind

If the tax is bad for the internet, then I’m for the tax.


3 posted on 05/10/2014 10:53:55 AM PDT by Age of Reason
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To: SeekAndFind; All
It prevents most state and local governments from taxing your internet access fees.

Now that somebody has mentioned it, I don't know if the server that is my primary gateway to the Internet is even in the state. So I don't know if the server falls under state legislative control via the 10th Amendment, or is in another state and consequently under federal government control via the Commerce Clause.

And then there is the Constitution's Clause 5 of Section 9 of Article I:

Article I, Section 9, Clause 5: No Tax or Duty shall be laid on Articles exported from any State.

Also, regardless what state the server is in, I don't see where Congress has the constitutional authority to tell state and local governments what they can and cannot tax. It's ultimately the job of the sheeple in a given state to get off of their couches and exercise their voting muscle to tell state and local governments what they can and cannot tax.

As usual, everything's a mess.

4 posted on 05/10/2014 10:55:08 AM PDT by Amendment10
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To: Age of Reason

The ‘bad for the internet’ part could use some explanation.


5 posted on 05/10/2014 11:02:15 AM PDT by Balding_Eagle (Want to keep your doctor? Remove your Democrat Senator.)
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To: Age of Reason

That’s a pretty stupid comment

Taxing the internet would have the same effect on the internet as The Fairness Doctrine had on broadcast media


6 posted on 05/10/2014 11:07:28 AM PDT by Mr. K (If you like your constitution, you can keep it...Period. PALIN/CRUZ 2016)
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To: Age of Reason

Disconnect now. An IP adddress is being wasted.


7 posted on 05/10/2014 11:33:27 AM PDT by Myrddin
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To: SeekAndFind

If they tax access, I’ll download more technical information and get off.


8 posted on 05/10/2014 1:56:53 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: SeekAndFind
"The 15-year-old Internet Tax Freedom Act prevents most states and local governments from taxing access. The moratorium enjoys widespread bipartisan support in Congress."

My county in CO has been taxing it for years anyway.


9 posted on 05/10/2014 1:59:21 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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