President Bush calls for ban on broadband Internet tax (updated)

“US President George W. Bush has urged Congress to slap a permanent ban on the taxes consumers pay for high-speed Internet connections, reports Associated Press. Bush has set 2007 as a deadline for providing speedy Internet access to every American home, and has acknowledged that America is lagging in getting broadband available nationwide,” Warwick Ashford reports for ITWeb.

“To encourage the spread of this technology, Bush says the users should not be taxed, and that the government should take steps to encourage the spread of competitive services,” Ashford reports. Full article here.

“Bush is [also] announcing that the Energy Department has selected partners for more than $350 million in new research projects to remove roadblocks to developing hydrogen fuel technology. The projects will address the problem of storing hydrogen on vehicles; increasing consumers’ knowledge about hydrogen energy and making hydrogen fuel cells that are both durable and affordable,” Deb Riechmann reports for The Associated Press. “Bush also is setting a goal for most Americans to have electronic health records within 10 years. Paper ones, he says, can lead to errors, inefficiencies and poor communication among doctors and nurses. To help reach the goal, the president is creating a national health information technology coordinator, a sub-Cabinet-level position.”

Riechmann reports, “On broadband, the name for the high-speed Internet connections over phone, cable and satellites, Bush said in a speech last week that America is ‘lagging a little bit.’ To encourage more broadband connections, he believes users should not be taxed, and that the government should encourage competition among providers. Bush has already signed into a law a two-year extension of the Internet Access Tax moratorium, which expired last fall. Now, he’s calling on Congress to pass legislation that would extend the moratorium to broadband and make it permanent. The House has passed a moratorium on user taxes levied against consumers who subscribe to broadband; the Senate is scheduled to address the issue this week.”

Full article here.


  1. C’mon, let’s try to stem the tide of politics in this forum quickly today. As you guys know, I’m not a Bush supporter, but let’s not bash the guy here for this. Can we play nicely today?

  2. I think this is by far the most hilarious thing I have ever heard. As of the end of 2002, over 400,000 US homes are without running water. However, broadband connections are a must. Talk about priorities.

  3. This is not a political comment…just a general observation from me:

    Although I’m all for no new taxes I don’t understand this. Really?!?! If he has such a hard on for not taxing broadband internet connections because he wants to encourage the spread of broadband then why not expand the ban to tv, cable and satellite? People are entitled to be informed. We don’t pay tax for a newspaper do we? We pay for the each service as a whole so why do they need to be taxed if they are the way people acquire their information? Broadband is no different then the other services, it’s just a different way we acquire our information, really!

  4. If W wants to get it right, he should add in a ban on state and local taxation also. Where I live they are taxing everything but air and raising every tax that exists. “The power to tax is the power to destroy”.

  5. No, we’d still have to pay for the service but won’t get taxed on it.

    Ace, no matter what the government does, some people cannot be helped. There will always be a faction of people who fit the third-world category.

    If the US wants to stay competitive with the rest of the world, we need easy and cheap access to broadband internet. Face it, the internet has become an integral part of our lives and President Bush has made a good call on this one.

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