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An Internet Tax Reprieve...For Now

Oct 26, 2007  By Justin Ryan

In what is being reported as an overwhelmingly positive vote, the United States Senate passed the Internet Tax Freedom Act Amendments Act of 2007 yesterday, extending the prohibition of taxes on internet use for an additional four years.

The House of Representatives passed a similar bill in a nearly-unanimous vote last week. The two bills now proceed to a conference committee to determine final language before being sent to the President.

While an extension of the Internet Tax Moritorium has been hailed by many as a positive move for consumers, Internet Service Providers warn that the increased burden of providing broadband service to rural areas – which, without Federal assistance, falls upon local governments and the providers themselves – may cause rate increases of up to 17%.

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Justin Ryan is a Contributing Editor for Linux Journal.

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