One of the sharpest critics of the idea has been Rep. Christopher Cox, a California Republican who's one of the leading advocates for lower taxes in Congress. Cox also is chairman of the new Homeland Security committee, which oversees both physical and "cyber" security.
First elected in 1988 to represent an area near the University of California at Irvine, Cox was an early supporter of rewriting securities laws to prevent predatory suits against high-tech companies and fought to curb near-automatic growth in federal budgets. He also championed the Internet Non-Discrimination Act, which shielded e-commerce from taxation by local and state governments.
While Cox has been talked about as a possible U.S. senator from California, so far he's declined a direct challenge to Dianne Feinstein or Barbara Boxer. CNET News.com spoke with Cox about Internet taxes, Microsoft and security.
Q: What's going on behind the scenes at the tax committee? What led it to suggest this as an "option?"
Cox: The Joint Committee on Taxation abused its responsibility to include presenting tax increase options to Congress. That responsibility was executed gratuitously here because some inquiring senators weren't soliciting ideas for tax increases. Instead they were asking the Joint Tax Committee on how to include compliance with our existing tax laws.
Have you talked to Sen. Orrin Hatch, who chairs the tax committee?
Cox: I have not. I think the problem lies not with the senators but with staff that is involving itself gratuitously in proposals to raise taxes on the Internet.
Sometimes senators and representatives write to the committee and ask for ideas about how to raise revenue. In those cases, even though individual staff members may not (want tax increases), they propose it. But in this case, the request to the committee did not call for proposals to raise taxes.
Can you think of any justification for extending the Spanish-American War tax to the Internet?
Cox: There isn't a good reason for it. On the Energy and Commerce Committee, which I just left after 10 years, the issue has been studied exhaustively. The Spanish-American War tax, as we know from exhaustive research, ought to have been repealed over half a century ago. The Congress promised when it was enacted that immediately
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Between now and March 22, 2005, the Federal Communications Commission (or FCC) will decide if Internet-based phone services (also known as VoIP services, or broadband phone services) should be kept free of heavy regulation and of unfair access charges which are subsidies in the form of Government-backed corporate welfare to the "near monopolies" you probably know as the "Phone Company".
This important decision could happen any time between now and March 22nd; so please take 30 seconds to fill out the form below which will be mailed directly to the FCC members. Together we can make a difference.
http://fcc.NOTaDuck.com/
Between now and March 22, 2005, the Federal Communications Commission (or FCC) will decide if Internet-based phone services (also known as VoIP services, or broadband phone services) should be kept free of heavy regulation and of unfair access charges which are subsidies in the form of Government-backed corporate welfare to the "near monopolies" you probably know as the "Phone Company".
This important decision could happen any time between now and March 22nd; so please take 30 seconds to fill out the form below which will be mailed directly to the FCC members. Together we can make a difference.
http://fcc.NOTaDuck.com/
Get a high powered lobbyist....
Its done....
Get a high powered lobbyist....
Its done....
if the internet were taxed, call your broker and tell him to buy stock in foreign countries... because thats where internet companies would move to. How do you collect a tax if my internet site is in timbuktu? Why should I stay in an inhospitable to business country that wants to tax me and not my compitition?
There goes the nieghborhood.
- impossible
- by April 11, 2005 4:47 PM PDT
- Talk about cutting off your nose to spite your face...
- Like this Reply to this comment
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(12 Comments)if the internet were taxed, call your broker and tell him to buy stock in foreign countries... because thats where internet companies would move to. How do you collect a tax if my internet site is in timbuktu? Why should I stay in an inhospitable to business country that wants to tax me and not my compitition?
There goes the nieghborhood.