Democrats fail (at least for now) to protect Net users from taxes

Democrats in the U.S. Congress failed on Thursday to protect Internet users from higher taxes.

The Senate Commerce committee, chaired by Sen. Daniel Inouye (D-Hawaii), mysteriously killed a vote on an Internet tax bill that was supposed to take place at 2:30 p.m. ET. With a laugh but no explanation, Inouye simply told the hearing room it wasn't going to happen.

Normally postponements of votes would be mere congressional background noise. This is different because, as we wrote about earlier this month, a temporary federal moratorium on Internet access taxes expires on November 1.

If a lackadaisical Congress does nothing, in other words, Americans soon are likely to be paying more to local governments for the privilege of buying DSL and cable modem service. (These are some of the same local governments that have adopted as their motto: "If it exists, tax it. And then tax it some more.")

Time's running out. Sen. John Sununu, a New Hampshire Republican who does support renewing the moratorium, made a good point in a statement after the nonvote: "We introduced a bill to permanently ban Internet access taxes back in January. I just don't understand the continued delay in action. The clock continues to tick, placing Internet tax freedom in real jeopardy."

You can blame the Democrats for this state of affairs. Not all of them in the Congress, to be sure, but if this was a priority for the Democratic leadership, Majority Leader Harry Reid would make this happen post-haste. John Conyers, a key Democrat in the House of Representatives, finally got around to introducing legislation called the "Internet Tax Freedom Act Amendments Act of 2007" on Thursday that generally offers a four-year extension.

While Inouye's office didn't respond to a request for comment on Thursday, one explanation is the continued tension between folks who want the moratorium made permanent and lobbyists like the National Governors Association who are willing to accept only a temporary extension. The bill that was supposed to receive a vote, S. 1453, includes only a four-year extension.

Mike Wendy, a representative of the CompTIA technology trade association, told me afterward: "We would like to see it permanent. But we recognize how legislation works and so we'll certainly take whatever we can get. We had anticipated on the Senate side we'd see a four year extension. That's better than lapsing."

That's true, I suppose, but that's not saying much. If the Democrats can rush a hasty, ill-considered and perhaps even unconstitutional wiretapping law into effect in just a few days last month, why can't they take a few minutes to schedule a vote that would actually protect Internet users for a change?

Update 9:14 a.m. PDT Friday: This odd statement--it's odd because it was his decision to postpone the vote--from Inouye's office arrived in my in-box this morning: "I am disappointed that the Commerce Committee was unable to act on legislation to extend the Internet tax moratorium at today's markup. But after discussions with my colleagues, I believe that further negotiations are warranted. It is my hope that a reasonable compromise can be reached and that the Committee will be able to take swift action in the future."

[billmosby]

Let me get this straight...

You're wondering why Democrats aren't rushing to prevent a
certain class of taxes from being created. Democrats!

[Leria]

Wrong party

If you are thinking that the Democrats are the ones who 'push new taxes', think again. The only thing they do in most cases is to repass taxes that the Republicans in their great stupidity have removed in order to balance the budget.

There are VERY few times when the Democrats push for a 'new' tax, it's usually the Republicans who do that and mask it by calling it a 'fee' or 'license'.

[gsman11]

lol

couldn't have said it any better myself. i cant believe anyone would be surprised by this.

[vhac]

Da*n tax

On this issue, Democrat sucks. I sure don't want more taxes. Anyhow, Congress always want more money, especially when the war cost HUNDREDS of billions of dollar and got nothing to show for it years later. Thanks president Bush!! When you look at it, many fees, licenses increased. Many services to Americans are being cut, healthcare, school grants, soldier services, etc. All that to patch the big HOLE of spending on the war.
This will affect the spread of broadband to many people. I prefer permanent tax ban!!

[nobdoy_knose]

misleading (and partisan) headline

your headline makes it sound like the Dems are fighting to protect users from net taxes. When you look at the facts in the story though, you realize that it is DEMOCRATS who are delaying action to protect net users from taxes. Not surprising really, but certainly a pro-Dem slanted take on the issue.

[aka_tripleB]

The headline wasn't misleading

It said Democrats failed to pass a law to keep from taxing internet users and that was what the article was about. And let's not forget that most news organizations choose a politician to back for political office. That means that they usually are a partisan group.

[Neo Con]

Not so fast

Yeah, I'm not so sure about that. I kind of thought this article was rather refreshingly honest. I don't think anyone is particularly surprised that the Democrats aren't too keen on preventing new taxes, but I thought the article and the headline made it quite clear that they were the ones blocking this legislation while the Republicans are the ones trying to protect net users.

Nice article, C|Net.

[georgiarat]

No Surprise Here!

Democrats never saw a tax they did not like. They just want your
money to buy more votes through entitlements that are
bankrupting this country.

[Gringras]

Please people...

Don't be naive. Democrat or Republican does not matter. Neither
party, nor any politician gives a rat's a** about the "American
people". You have to be a lobbyist or a corporation with an open
check book to be heard by these b@stards in Washington and the
state legislatures. Once elected they forget all about regular
people. It's not politics, its just the love of money.

[menotbug]

RE: Lazy on Net Tax Ban, hasty on Illegal Wiretapping

So many were elated to have a new balance of power elected last
November, thinking some good change would be coming
around...

Today it's obvious we have a spineless group of Congressmen.
Has anyone pondered the possibility that Bush & the NSA have
been using the illegal warrantless wiretapping of the phone and
internet to gather blackmail on our Congress? Could this be why
they are so afraid to stand up to him? They are probably all dirty
anyway - how else do you get elected these days?

[tbuccelli]

not just Bush

As much as it seems like you would like to blame President Bush and the Republicans for all, it seems you have it backwards. Republicans have been the ones proposing making the tax ban permanent.

Most likely that the Democrats want to allow the allowance for taxes to go through, and they only need the honorable Senator from Hawaii to delay long enough to allow the current tax ban to expire. That way the others can state that they were against it all along (sure, right), it's just they did not get a chance to vote on it. They will then try and blame the Republicans for that somehow I am sure.

I am not saying the Republicans are better, just that each group wants more to blame the other than to actually do something to help the people, and the Democrats are the ones that control the show in both houses at the moment.