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Bush Signs Internet Tax Ban
(Click here to view the original thread with full colors/images)
Posted by: Ion Silverbolt
Yahoo News has some info about it. Effective for the next three years.
State and local governments will be barred from taxing connections that link people to the Internet for the next three years under legislation signed Friday by President Bush.
The measure blocks taxation of all types of Internet connections, from traditional dial-up services to high-speed broadband lines.
Posted by: Ocean
so does this mean my charter pipeline bill will not have a sales tax?
Posted by: redwench
no, if your state imposes service taxes, they can do so on isps like any other service. they cannot tax your connection though, which is different.
Posted by: Ocean
they can tax the service but not the connection, and sales tax is entirely seperate. maybe my state doesnt have anything similar. so im gonna need a specific analogy to comprehend this.
but some to think of it, how much of the internet telecommunications infrustructure is actually maintained by the government? why would the government have a right to collect a significant amount of money for it?
except for maybe their monitoring of it due to the patriot act.
Posted by: redwench
your state goverment (most likely) taxes every good and service transaction in the state. its called revenue ^^ . you go to a restaurant, you pay this tax. ditto the grocery store. plumber fixes your pipes, you pay this tax. the nature of the service/good, generally speaking, is irrelevant.
taxing your service contract with an isp is not the same as taxing a broadband connection. your contract just happens to be for a connection, it could be for anything.
Posted by: Ocean
i guess my state doesnt have anything like that. just sales tax on everything, and property taxes.
so the concept is very new to me.
my state doesnt tax for my tv satellite connection or my xm satellite connection or my cell phone connection or even my home phone connection. nothing more than sales tax at %6.
so im completely unfamiliar for just a flat tax to access the internet. the concept doesnt even seem justifiable to me.
Posted by: redwench
the sales tax is a service tax, unless youre buying goods. states can normally tax anything they see fit within their state, the law signed just prohibits the specialty taxes on internet connections. you will still pay your service/sales tax. you just wont pay the 15% on top that some groups wanted to put in.
Posted by: Ocean
ahh, so because in my state the sales tax, and the service tax have always been the same rate, no one other than tax lawyers ever bothered to destinbguish between the two. i feel enlightened.
Posted by: redwench
they might not be different at all. i just consider them separate because services werent taxed here until the last 10 years or so. goods were always taxed.
Posted by: VERCETTI
Good for Bush, but jeez, there are enough taxes already to make you dizzy, same with Cell phones
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