Senators face new pressure to renew Net tax ban

With only weeks to go before a federal halt to Internet access taxes expires, a handful of Senate Republicans is applying a new form of pressure on the Democratic leadership.

Sen. John Sununu (R-N.H.) on Wednesday reintroduced an identical version of his bill from January that would make permanent an existing moratorium set to end November 1. Unless Congress passes his proposal--or at least another temporary extension--there won't be anything stopping most state and local governments from taxing Internet access, including DSL (digital subscriber line), cable modem and BlackBerry-type wireless transmission services.

The difference this time is that Sununu filed the proposal under a Senate procedure known as Rule 14, which makes it eligible for immediate consideration on the Senate floor. That's significant because bills typically must first be cleared through subcommittee and committee votes--a process that can be time-consuming, as has been the case this year.

Last week, the Senate Commerce Committee, of which Sununu is a member, was supposed to vote on a bill that would have extended the ban for four more years. But at the last minute, committee chairman Daniel Inouye (D-Hawaii) inexplicably yanked the bill from consideration.

The committee released a statement the next day saying "further negotiations were warranted," but it's still unclear when it will reschedule a vote. The House of Representatives Judiciary Committee, which is considering similar legislation, also hasn't scheduled its own vote yet, an aide said Thursday.

In a statement on Wednesday, Sununu asserted that he's confident the Senate Commerce or Finance committee would return to the bill. Still, he said, he took the latest procedural step because he believes enacting legislation to make the Internet tax ban permanent is so important that there's a need to "keep every door open."

Senate Republican leader Mitch McConnell of Kentucky and Sens. Trent Lott (R-Miss.) and John McCain (R-Ariz.) joined Sununu in introducing the bill, but another original cosponsor--Sen. Ron Wyden (D-Ore.), who was the author of the first Internet tax ban back in 1998--did not. His office didn't respond immediately to requests for an explanation.

What will happen next remains unclear. Because state officials and Internet and broadband companies still disagree over whether a permanent ban is advisable, it has appeared increasingly likely in recent months that simply a finite extension, to be revisited again in a few years, will ultimately pass. (Some Republicans have said they believe they have enough votes to enact a permanent ban, but Democratic leaders have been less willing to make that commitment.)

A spokesman for Senate Majority Leader Harry Reid (D-Nev.) deferred to the Commerce Committee to give further details on the bill's next step, and committee aides didn't respond immediately to requests for comment Thursday.

[mikalg]

For Heavens sake!

What are they proposing be taxed? We pay tax already for the DSL/Cable/Satelite connection we are using to access the internet already. Only, we are taxed for THAT particular service (TV/Telephone) services. Yet another multiple taxation for a single entry point for consumers, and American citizens. Enough already. We already pay the subscriber line tax, for the privilege of having the line in our home. Now, because we use the same line for more than one purpose, we are to be taxed AGAIN? Hey Congress, get smart and just increase the subscriber line tax already! You don't have to label the tax (INTERNET) that way. We just might not notice it being taxed again for a third time. Every watch CSPAN? Christ, it gives me the willies! Bunch of self important bozo's pretending, badly, to understand the topic of which they discuss. I am shocked that anything ever gets done. Three hours of questions, rephrased in a separate manner, and opinionated rhetoric that get the subject of the session nowhere at all. I think I am going to be sick..........

[mikalg]

'Er forgot one thing.....

The third taxation I am referring to must also include SALES TAX. You pay this on every bill you receive. Internet taxation would be the third vehicle for taxation on the Cable/DSL/Satellite connection you have into your home.

[pieceofmind]

What is so difficult about this?

Why is it that the Democrats are dragging their feet on passing the ban on Internet taxation?? What part of STOP TAXING OUR EVERY BREATH do they just not get?

Personally I think it's time for another Boston Tea Party only this time we throw the politicians overboard.

When does the madness of over taxing hardworking citizens end? When we have nothing left to pay taxes with!

[notgonnatellya]

Yeah,

because the republicans did a great job of passing it when they controlled all 3 branches of congress.

And they've done a great job of controlling spending.....oh wait, they didn't do either of those things.

And lest we forget, one of the only states that does tax internet services, is Texas. As I recall, that started when the current president was governor.

Bottom line is, that blaming Democrats makes no sense. They're not innocent, but neither party does anything that will result in lower taxes over the long term. You can't spend like Imelda Marcos at a shoe store and expect taxes to stay down.

I'm for it, but the truth is that if the revenue is needed and they can't get it from that, they'll get it some other way.