US Exempts Internet Connections from Tax
There is great pressure from local governments to tax internet connection services. Several states already tax broadband and DSL, pointing out that people rely on those lines for everything from remote work to streaming and even credit card betting sites. A prior ban on such taxes lapsed at the end of November, but President Bush last Friday signed a bill to extend that exemption from local taxation. States already charging a broadband tax were allowed to keep it for two more years, showing how the fight over internet revenue had become tied directly to daily online habits.