Elpasotimes.com - Senate Approves Continuing Internet Tax Moratorium

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Elpasotimes.com - Senate Approves Continuing Internet Tax Moratorium

The Senate on Thursday night approved a seven-year extension of a moratorium on state and local taxes on Internet access.

The Senate voice vote came a little more than a week after the House passed a bill calling for a four-year moratorium. The tax ban, first approved in 1998, is set to expire Nov. 1.

Sen. John Cornyn, R-Texas, said today he supported the moratorium.

"This is a victory for taxpayers and consumers," Cornyn said. "The Internet is an important economic engine, which also helps users learn and communicate. The tax moratorium has helped the Internet expand and has protected entrepreneurs from burdensome taxes. I hope Congress will act quickly to reach an agreement on the extension and continue to protect the Internet from multiple and discriminatory taxes."

Attempts in both the House and Senate to make the ban permanent in recent weeks were unsuccessful despite strong support for the idea.

Sens. Tom Carper, D-Del., and Lamar Alexander, R-Tenn., in a joint statement called the agreement "a commonsense victory both for Internet users and for state and local governments."

The two chambers will have to reach a compromise on the length of the ban and other differences before the bill can be sent to the White House for President Bush's signature.

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