Sunday, September 30, 2007

US Internet Tax debates

US consumers may have to pay an Internet access tax if the US decides on Nov 1 to lift the federal ban.


Currently the lines that provide Internet access in the US are virtually tax-free but this could change soon if local government has anything to say about it.


Within the industry the idea of imposing additional taxes on Internet access is extremely unpopular and organizations like Google, AT&T and Timer Warner have banded together to form a group called “Don’t Tax our Internet”.


Changing Internet usage has complicated the issue, threatening to derail an extension and raising the specter of local officials engaging in a land-rush-like race to enact new taxes for surfing the Web.


In the forthcoming weeks it will be interesting to see how this matter plays in the US and who will win out – US government or the industry players

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