Senate Majority Leader Pits One Internet Tax Against Another

July 21, 2014 - GamePolitics Staff

A new Senate bill may force lawmakers to agree to expand the reach of sales taxes on out-of-state retailers, or see the end of a law that forbids states and cities from imposing a tax on internet access. As the Wall Street Journal reported on Friday, this choice for lawmakers is due to Senate Majority Leader Harry Reid’s handling of a bill called the Internet Tax Freedom Act.

The bill, which passed the House by a large margin, would make permanent a moratorium on ISP taxes. The measure is popular amongst voters because it means consumers won’t see "service fees," like they see on their cell phone bills.

But Reid did something that some might call a bit shady: he attached it to another bill called the Marketplace Fairness Act. That bill, which passed the Senate last year, would require online retailers to collect tax on sales they make to out-of-state consumers.

The conundrum for Senators is that if they vote against the bill, there is a good chance the tax moratorium on internet access will expire when a sunset clause goes into effect in November. This will allow local governments to start charging fees.

The bill is likely to come to a vote before the August recess.

We will have more on this story as it develops.

Source: GIGA OM


Comments

Re: Senate Majority Leader Pits One Internet Tax Against Another

Remind me why rider bills are legal in the first place?

Re: Senate Majority Leader Pits One Internet Tax Against Another

So he's just trying to decide if he should use lube or not.

Re: Senate Majority Leader Pits One Internet Tax Against Another

Among many other other terms, when you see the words "freedom" and "fairness" in the title of a bill, you know immediately that the results of the bill will be far from what the ast majority of people associate with those words.

Re: Senate Majority Leader Pits One Internet Tax Against Another

Yeah... Freedom, Fairness, Patriot, any of those words mean the name is probably trying to distract you from how the bill will screw you.

 
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