CQ TODAY MIDDAY UPDATE
Oct. 30, 2007 – 1:40 p.m.
Congress Clears Seven-Year Ban on Internet Access Taxes

The House on Tuesday unanimously passed and sent to the White House a bill that would continue the current moratorium on taxing Internet access for seven more years.

The 402-0 vote came just in time, as the current ban expires Nov. 1. Lawmakers said they hope President Bush will sign the measure swiftly.

“We’re coming in right under the wire,” said California Democrat Anna G. Eshoo.

Eshoo was among lawmakers in both chambers who wanted a permanent ban on Internet access taxes, but she considered the seven-year extension passed by the Senate preferable to the four-year version the House had originally approved.

“I knew we could do better, and today we are,” Eshoo said.

Changes made to the bill by the Senate last week also would phase out some provisions “grandfathering” a handful of states that have long taxed Internet access. For a state to continue to assess such taxes, it must have enacted its current levy more than two years ago and it must be actively collecting the tax.

“It’s a use it or lose it policy. If the state doesn’t enforce the tax, it loses the protection,” said Rep. Lamar Smith, R-Texas.

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