To: xcr600 who wrote (16203 ) 12/9/2003 10:50:03 AM From: Bucky Katt Respond to of 48461 More info on the VoIP tax status I was referring to> (All we can do is play the trading range the VoIP stocks have established for now) Congress has -- once again -- punted on whether to bar states from taxing Internet-access fees. But here's the latest twist: A deal banning Internet taxes once and for all was inadvertently done in by telecoms and their congressional allies. Instead of a permanent ban on such taxes, which Congress would have easily passed two months ago, lawmakers left town having agreed on nothing. The moratorium on such taxes has now expired. So, states are -- in theory, at least -- free to impose levies on Internet access. That will set the stage for yet another battle over e-taxes next year. And that struggle could, for the first time, take the issue beyond the narrow question of taxing monthly Internet service provider (ISP) fees. It could open the door to the much bigger controversy over taxing all e-commerce . Despite the common perception, the issue of the Internet tax moratorium has never involved online purchases of merchandise but only ISP services. The sales tax debate has always been lurking in the background, but it hasn't been included in any congressional legislation. Now that the moratorium has expired, the two may become inextricably linked in 2004. To understand why, it's important to know what happened this year on access taxes. Just as the antitax faction was poised for a big -- and surprisingly easy -- win, it got greedy. Congressional allies such as Senators George Allen (R-Va.) and Ron Wyden (D-Ore.) tried to slip in a provision that would have gone far beyond taxes on monthly ISP fees and, instead, tried to bar states from taxing a broad range of Internet-based telecom services, such as Internet telephony, or voice-over-IP (VOIP). That angered state governments. As telecom rapidly becomes Internet-based, they saw themselves potentially losing as much as $9 billion a year. ecommercetimes.com