Congress is looking to keep popular Internet-only services, such as email and social networks, permanently free of taxes. Sen. Kelly Ayotte and Sen. Dean Heller are seeking a permanent extension of the original 1998 Internet Tax Free Act, which is set to expire in November 2014. “E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped,” said Ayotte, in a statement.
The newly introduced bill doesn’t affect the recent taxes that Californians have seen when they purchase Fifty Shades Of Grey on Amazon.com, since it only bars federal, state, and local agencies from taxing Internet-only services. As of last fall, California began charging between 7.25 percent to 9.75 percent on online purchases.
At the other end of the spectrum, Sen. Dick Durbin and others are seeking a law that would permit states to collect taxes from another for online purchases, according to The Hill.