By James L. Gattuso, Guest Blogger
Remember Bill 602b? That legislation, which you probably heard about in a message forwarded to you by a well-meaning relative or friend, would have placed a five-cent tax on e-mails.
It was a hoax, of course. No such bill ever existed. But now comes word that the Internet tax bill just passed by the House actually would allow such taxes to be imposed.
According to a Congressional Research Service memo sent yesterday to Sen. Ron Wyden, D-Ore., the bill’s definition of "Internet access" would allow taxation of "many more products and services" than the existing moratorium. Including, CRS said, taxes on e-mails.
E-mail and other Internet services are included in the prohibition now, even though they are not actually "access" services. However, they would be covered under the new language only if they are "incidental" to Internet access service.
As News.com explained: "That means, by the CRS' analysis, that if I'm a Verizon broadband subscriber but opt to get my e-mail service through, say, Yahoo's premium offering, the e-mail service is potentially taxable because it'[s not directly offered by the provider of my Internet connection."
No one, apparently, is actually planning an e-mail tax. The 602b hoax probably killed any chance of that. But who knows which of those "many more products and services" could end up being taxed?
It’s amazing what you can find in the find print of legislation. Thank goodness someone read it.
Gattuso is a senior research fellow in regulatory policy at the Heritage Foundation.
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