Internet kept tax-free for another 7 years

The mobile-phone industry cheered congressional approval of a bill to ban Internet access taxes for the next seven years, even though cellular carriers and others lobbied aggressively for a permanent ban.
“In taking this action today, Congress has wisely decided to keep the Internet tax-free for the next seven years, the longest extension in history,” said Steve Largent, president of cellular industry association CTIA. “This is an important and critical step because it means that broadband services will continue to be affordable for all Americans. Like never before, wireless broadband applications are helping consumers of all walks of life access the information they need to compete in a global economy. In doing so, wireless broadband is helping to dramatically increase standards of living for all Americans.”
The measure is now headed to President Bush, who is expected to sign it into law. The temporary Internet tax prohibition is due to expire on Thursday.
Sen. John Sununu (R-N.H.) was the force behind extending the Internet tax moratorium from four to seven years. “It’s great to see Congress act on time for a change and take an enormous step for Internet tax freedom-banning access taxes and protecting e-mails and instant messaging for the next seven years,” he stated. “With House passage of my amendment, the president can sign the bill into law before the current four-year ban expires on Nov. 1. This seven-year ban nearly doubles the House proposal and further strengthens tax protections for e-mails and instant messaging. I will continue to fight for a permanent ban on access taxes, but this is a strong step forward. Taxing the Internet is wrong for consumers and wrong for the economy.”