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Internet Access Tax May Not Be Dead

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Thought you were free from paying new taxes on your Internet access, at least for the next four years? The Internet Tax Non-Discrimination Act was supposed to put a moratorium on new Net taxes. That, however, hasn't stopped some in Washington from suggesting that old taxes might be applied in new ways.

In the report released in January, the Joint Committee on Taxation proposes that Congress take one of three actions to expand the tax to the Net. The most significant would expand the tax to all communications services to end users. That means Congress could add a 3 percent tax to the following:

  • Voice over IP communications

  • analog and digital cellular and satellite telephone services
  • cable and satellite television services
  • broadband and dial-up Net access services
  • paging services
  • bandwidth, provided as a service, lease, or sale of fiber optic cable

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