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Congress Votes to Prohibit Internet Tax

<p>Congress voted last Thursday to indefinitely ban state and local governments from taxing Internet access&period; The <em>Internet Tax Freedom Act<&sol;em> breezed through the House and Senate as part of a customs bill &lpar;H&period; R&period; 644&rpar; that Obama has promised to sign&period; The bill passed through the Senate with a 75-20 vote as lawmakers jumped at the election-year opportunity to exemplify their opposition to imposing restrictions on Internet service&period;<&sol;p>&NewLine;<p>&ldquo&semi;This is a great day for American consumers&comma;&rdquo&semi; says Ajit Pai of the Federal Communications Commission &lpar;FCC&rpar;&period; &ldquo&semi;This confirms a national consensus that state and local taxes on Internet access should be taken off the table once and for all&period;&rdquo&semi;<&sol;p>&NewLine;<p>&ldquo&semi;The Internet is a resource used daily by Americans of all ages&comma;&rdquo&semi; explains Senator Mitch McConnell &lpar;R-KY&rpar;&comma; who arranged an agreement with one of Congress&rsquo&semi; Democratic leaders that helped pave the way for the bill&rsquo&semi;s passage&period; &ldquo&semi;It&rsquo&semi;s important that they be able to do all of this without the worry of their Internet access being taxed&period;&rdquo&semi;<&sol;p>&NewLine;<p>The idea to ban local Internet access has widespread support&period; However&comma; some lawmakers remain displeased regarding the bill&rsquo&semi;s trade provisions and because the document omits a controversial proposal that would have allowed states to force online retailers to gather sales tax for transactions&period; The bill is full of &ldquo&semi;missed opportunities and half-measures&comma;&rdquo&semi; complains Senator Harry Reid &lpar;D-NV&rpar;&period;<&sol;p>&NewLine;<p>The popular belief that the Internet should be free has spurred Congress to pass temporary bans on Internet taxes since the 1990&rsquo&semi;s&period; But until now&comma; seven states have been getting away with it&period; New Mexico&comma; Hawaii&comma; Ohio&comma; North Dakota&comma; Texas&comma; Wisconsin&comma; and South Dakota have been reaping an annual sum that when combined exceeds &dollar;500 million&period; When Obama signs H&period; R&period; 644&comma; these states will have until 2020 to phase out their Internet taxation systems&period;<&sol;p>&NewLine;<p>The wide-ranging bill&comma; which will also revamp trade laws&comma; has pitted the US Chamber of Commerce and several business groups against the ALF-CIO and multiple labor organizations&period;<&sol;p>&NewLine;<p>Supporters believe the bill would increase the US government&rsquo&semi;s ability to head off China and other nations from manipulating the value of their currencies in order to make their exports more affordable&comma; boost US trading by improving protections for intellectual property including trademarks and copyrights&comma; and help authorities crack down on imported goods that have been produced through the use of child labor&period; &nbsp&semi;<&sol;p>&NewLine;<p>Democratic critics argue that the document&rsquo&semi;s trade protections are insufficient and complain that those who penned the compromise weakened the bill to the point of uselessness&period; Many Democrats were not happy with provisions barring trade agreements that might inhibit efforts to curb greenhouse gas emissions and force the US to restructure immigration laws&period; &nbsp&semi;<&sol;p>&NewLine;

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