House Extends Internet Tax Moratorium

In a move sure to appeal to the important high-tech industry, the US House of Representatives has approved a five year extension on the moratorium on Internet taxation.

The moratorium, which allows for e-commerce to be conducted free from any federal taxation issues, is seen as a way to continue encouraging the growth of a new medium, but at the same time does not address the even more important issue of state taxation of electronic commerce activities.

Cynics may say that the move is a purely political one, coming in an election year when politicians are looking to the growing high tech industry as potential allies for the future. The moratorium will help the e-commerce economy and will relieve the pressure on congress on how to deal with the Internet taxation issue.

The moratorium ban will next go to the Senate for passage.

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