CQ TODAY MIDDAY UPDATE
Oct. 16, 2007 – 2:03 p.m.
House Passes Four-Year Extension of Internet Tax Moratorium

Despite grumbling from lawmakers who want a permanent ban, the House voted overwhelmingly Tuesday to extend for four more years a moratorium on taxation of Internet access.

The bill (HR 3678) passed 405-2, The existing ban on Internet access taxes will expire Nov. 1 unless Congress extends it by that date.

Although supporters of making the ban permanent had enough votes to amend the bill to their liking, Democratic leaders put it on the floor under suspension of the rules, a procedure that bars amendments and is usually reserved for less controversial legislation.

“Basically, what the Democratic leadership has said is, ‘Here’s four years, take it or leave it,’ ” said Republican Robert W. Goodlatte of Virginia, cosponsor of a permanent ban.

Melvin Watt, D-N.C., said there was a very good reason for the decision to go with a moratorium extension rather than a permanent ban. “The Senate has not done anything yet and in many ways has made it clear that a permanent moratorium would be dead on arrival,” Watt said.

Insisting on passing such a ban “runs the risk that time will run out before the month ends and the moratorium will run out before the month ends,” Watt said.

The four-year extension, sponsored by Judiciary Chairman John Conyers Jr., D-Mich., would prevent most state and local governments from collecting levies on cable modem, digital subscriber line, Wi-Fi and other types of Internet access. A handful of states that taxed Internet service before access taxes were banned would be allowed to continue collecting the levies under the bill.

Senate Majority Leader Harry Reid, D-Nev., is widely expected to pick up the House-passed four-year measure for a speedy Senate vote.

The ban was first enacted in 1998 and was most recently extended in 2004.

Source: CQ Today Midday Update
Political Clippings compiled from BNN Frontrunner and CQ Politics.com.
© 2007 Congressional Quarterly Inc. All Rights Reserved.