Deal Reached To Keep The Internet Tax-Free For Now
Washington (AllPolitics, March 19) -- An agreement has been reached on keeping the Internet tax-free, at least for the next few years, CNN has learned.
The agreement, hammered out between Congressman Chris Cox (R-Calif.)
and Utah Governor Michael Leavitt, calls for a three year mortatorium on taxes.
But it would let state and local governments keep any taxes already imposed on
on-line services. The plan would also set up a congressional commission to
find ways to tax the Internet.
This move comes after disagreement over a proposed House bill, called the
Internet Tax Freedom Act, that would have kept state and local governments from
taxing the Internet for at least six years.
The compromise agreement is expected to be endorsed by Senator John McCain (R-Ariz.)
later today, and Leavitt and Cox will formally announce the agreement at 1 p.m. ET.