U.S. Sen. Lamar Alexander (R-TN), who has led the fight to allow states to tax Internet connections, said Friday the broadband industry needs no special tax breaks from the federal government.
“There were dire predictions that if states were allowed to keep taxing this access that it would become a terrible burden for the industry. Nothing could be further from the truth,” Alexander said on the floor of the Senate. “It is not the American way to subsidize such new inventions; it is the American way to let them earn their way forward in the marketplace.” Congress let a five-year moratorium on Internet access taxes expire in November of 2003. The moratorium expressly exempted ten states that were already taxing dial-up connections when the legislation went into effect.
Source: Internet News

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