President Bush signs Internet tax moratorium into law

“President George Bush on Friday signed into law a three-year moratorium on Internet access taxes. The law extends a ban on Internet taxes that expired on November 1, 2003. The original version of the Internet Tax Nondiscrimination Act, passed by the House of Representatives in September 2003, would have permanently extended a five-year congressional moratorium on taxes unique to the Internet, including taxes on access and bandwidth,” Grant Gross reports for IDG News Service.

“But the bill was held up in the Senate over concerns that it would allow telecommunications carriers to avoid taxes on traditional telephone service as they move traffic to Voice over Internet Protocol services. A compromise version crafted in the Senate and approved by the House last month allows states and cities to continue to collect taxes on telephone services, even if the calls are made over the Internet,” Gross reports. “The compromise version of the bill also allows states already collecting taxes on Internet access to continue to do so for up to four years.”

Full article here.


  1. Internet companies don’t have to pay property taxes or rent, and their employee costs should be lower than bricks-and-mortar stores. So why should they also get a sales-tax break?

    If they can’t compete on merit, they shouldn’t compete, according to the laissez-faire capitalists, like Bush claims to be. Face it, conservatives, Bush is a don’t-tax-and-spend-anyway fiscal moron.

  2. Umm, cat person, your feline instincts betray you. All companies have to pay local property taxes and either a mortgate on the building or rent. Furthermore, they aren’t getting a sales-tax break, the customers are. Sales taxes are added to the amount payed by consumers not included in the amount.

    Who’s the moron now?

  3. bush is still scum. he he really was serious about cutting taxes for the long term and not just while he was in office, he’d cut the crazy spending being done by the Republican congress.

    And there is nothing new here. Just continuing another moratorium on taxes left over from the Clinton days.

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