tax moratorium

[dock98]

something for all the "fuck bush " fans

President Bush signed a bill on Wednesday, effectively delaying taxes on Internet access for another seven years.

The "Internet Tax Freedom Act Amendments Act of 2007" was passed unanimously by both houses of Congress and pushed through to the president's desk last week before the previous bill banning taxes on Internet access ended.

The act extends the ban on taxes for Internet access that was originally passed by Congress in 1998 and renewed again in 2003.

The original bill was created as a way to keep Internet access less expensive for consumers.

"It makes access less expensive than if they had allowed taxation," said Mark Showalter, BYU economics professor.

It is difficult to estimate how much the average consumer is saving, because it's hard to guess what the tax rate would be, but without a tax, consumers are saving money.

"State and local governments would have probably had variations in how they implemented the taxes," Showalter said.

While it is difficult to estimate what the tax rate might have been, the Heartland Institute, a Chicago think tank, released a study in August on Taxes and Fees on Communication Services.

In that study they found that "Taxes and fees imposed on cable TV and telephone subscribers are, on average, more than twice as high as taxes on other retail goods, 13.40 percent versus 6.61 percent."

The study also found that consumers often choose not to use some telecommunications services because of the tax.

"Economists estimate the value of services lost, due to high taxes and fees on communication services, adds up to a 'deadweight loss' to society of $11.4 billion a year," according to the study.

Since the tax moratorium has been in effect since 1998, consumers won't see a direct benefit to the new law that was passed.

"It's just that they will be able to continue to get the benefit they have now," said Kevin Garlick, acting telecom manager for the iProvo Project.

article

[Cougar]

This was a GOOD move! It was unclear for a while what might happen. Bush and Congress came together one SOMETHING for a change. Glad it was this.

[myidisbb]

This was a GOOD move! It was unclear for a while what might happen. Bush and Congress came together one SOMETHING for a change. Glad it was this.

it does not stop the illegal user tax being collected by 18 states. (hidden sale tax)