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An attempt in the U.S. Senate to enact a permanent ban on Internet access taxes failed on Friday, with senators vowing to negotiate over the weekend and return to the topic next week.
State and local governments and their allies in Congress warn that a permanent extension of an existing moratorium, which expired on Nov. 1, would cost billions in lost tax revenue. The moratorium had applied to special taxes that singled out dial-up and some other Internet access methods and is not related to sales taxes.
Sen. Lamar Alexander, R-Tenn., said on the Senate floor Friday that the arguments for special tax treatment for Internet access were vanishing. "The Internet is not a baby in the crib anymore," Alexander said. "They can at least afford to hire the most expensive lobbyists. We know that."
Alexander said he hoped to reach a compromise that could be voted on by next week. "We'll be working over the weekend," he said. "We hope we can come to some agreement."
Posted by Muddy at November 8, 2003 04:04 AM | TrackBack