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Internet Tax Ban Introduced In Senate

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The Internet Tax Freedom Extension Act of 2007 was introduced in the Senate yesterday and would extend the current ban on Internet access taxes for another four years.

The bill was drafted by Senators Tom Carper, D-DE, and Lamar Alexander, R-TN. The Internet tax moratorium has been in place since 1998. The Carper-Alexander legislation would close tax loopholes and offer a clearer definition of "Internet access" while protecting services provided by state and local governments.

"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."

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