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DSL News
Senate Still Talking of Internet Access Taxes
Article #: 17
| Date: | | | Written By: | Andy Sullivan | | Article: | U.S. Senate lawmakers on Monday struggled to renew a ban on Internet access taxes as proponents offered to limit its scope in order to allay concerns that it could hurt state coffers.
After a vote on the measure was canceled Friday, staffers met Monday afternoon to hash out a deal with hopes that they could bring it to the floor for a vote sometime this week, congressional aides said.
But carving out time could be difficult, because a nasty partisan battle over judicial nominees was scheduled to take up most of the Senate's time over the coming week.
Backers had hoped to renew the ban before it expired on Nov. 1, but Arizona Republican Sen. John McCain seemed to set his sights a little farther back.
"I would hope absolutely before we leave for the Christmas break that we would have this issue resolved and voted on by the Senate," McCain said on the Senate floor.
Since 1998, Congress has prevented states and local governments from imposing taxes on the monthly fees Internet providers such as EarthLink Inc (Nasdaq:ELNK - news). charge their customers.
Lawmakers sought to make the ban permanent this year and widen it to cover high-speed cable and DSL services not included in the original ban. That version would also eliminate access taxes that were in place in some states before 1998.
The House of Representatives passed the bill in September.
State and local governments say its broad wording could cost them as much as $9 billion in tax revenues a year by 2006, as phone calls, music sales and other activities migrate to the Internet.
The Congressional Budget Office (news - web sites) estimates states would lose $195 million that year but said losses could be much higher.
Opponents such as Tennessee Republican Sen. Lamar Alexander (news - web sites) have proposed extending the existing ban by two years, an offer rejected as too short by backers like Oregon Democratic Sen. Ron Wyden and Virginia Republican Sen. George Allen.
Aides said a possible compromise bill would extend the moratorium for another five years and include high-speed access services, but that many details remained up in the air.
"We are willing to make some concessions, provided that the other side is also willing to make some concessions," said Allen spokesman Mike Waldron. |
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