"Our bill would ensure that consumers continue to enjoy tax-free access to the Internet, including e-mail and instant messaging," Sen. Carper said
"In the meantime, we fix many problems with the current law so that as future services, such as cable television, migrate to the Internet, we don't completely erode the tax base of state and local governments."
The Carper-Alexander bill also closes a loophole that was in the original 1998 moratorium that would allow an Internet Service provider to bundle Internet access with other services and make them all tax-free.
The reasoning behind closing the loophole is that it would still keep Internet access tax-free and also not harm the tax base of state and local governments.
"If we could liken the Internet to a mall, a place where you can go in and purchase goods and services, and also liken it to a library, a place where you can go and pull a book, pull a resource, and obtain some information, why would we tax a person upon entering a mall or why would we tax a person upon entering the library?" asked Rep. Hank Johnson, a Democrat from Georgia.
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