A ban on
taxing internet and email provision was first passed in the US in
1998 and has been extended twice for three-year periods. The Senate
had debated the creation of a permanent ban and the dismissing of
the law altogether.
Those who backed the tax moratorium said that internet access
was a social and economic force for good and should escape state
taxes.
“Broadband access is now a crucial driver of America's economy,
and this moratorium extension will ensure continued investment and
growth in the broadband marketplace," said Peter Davidson, a
Verizon senior vice president, according to news agency
Reuters.
States have argued that the option to tax access should be left
open for the future, when broadband access is ubiquitous and when
taxes could be a vital source of state income.
The Senate chose a compromise extension of seven years, the
longest extension yet, but short of a permanent ban. The House of
Representatives this week passed the senate’s text without
amendments and unanimously.
The US President is expected to sign the bill into law. The
previous extension expires on 1st November.
