
Wall Street Journal
September 26, 2007
Article Excerpt
For Internet users, the scariest night of this year may fall on the evening after Halloween. On November 1, the federal Internet tax moratorium is due to expire, and no committee in Congress has acted to make it permanent.
Last Thursday, prodded by a flurry of GOP press conferences, Senate Majority Leader Harry Reid issued a two-line statement saying that he had "every expectation that Congress will approve a continuation of the moratorium." Not exactly a passionate call to protect America's 213 million Internet users. Commerce Chairman Daniel Inouye added later that he's "hopeful" his committee can move a bill this week and he has scheduled a Thursday markup.
Listening to recent Democratic talking points on the economy, you might wonder why Congress isn't all over this issue. Democrats say they want to make the tax system less "regressive," if only they could get something past President Bush's veto pen. Here's an opportunity to prevent imminent tax increases on poor and middle-class consumers, and the President is ready to sign it. As an additional benefit, Democrats can avoid presiding over the Congress That Taxed The Internet. Recognizing the political vacuum, former New York Mayor Rudy Giuliani endorsed the Net tax ban to thunderous applause at a Friday event.
Yet the Senate's Mr. Inouye is planning to bring up only the four-year extension authored by Delaware Senator Tom Carper, a bill that invites governors and mayors to try to slap new taxes on some components of Internet access service, while claiming that the finished product remains tax-free. The better bill is the robust, permanent ban championed by Democrat Ron Wyden and Republicans Wayne Allard, John Sununu and John McCain.
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