From Deseret News archives:
States fear tax effects of voice-over-Net services
Phone plans could cost locals billions in lost revenues
Rep. Chris Cannon, R-Utah, who for years has tried to block taxes on Internet access because he says they would stifle its growth, is among those looking at the controversy.
And he believes in protecting the emerging Internet phone services.
Cannon, chairman of the House Judiciary Subcommittee on Commercial and Administrative Law, notes that several states are already attempting to regulate and possibly tax them. But, he said, "I call into question whether VoIP" shorthand for "Voice over Internet Protocol" "should be subject to state taxation."
He added, "Prompt action is necessary to promote rather than to undermine the development of this technology."
During a hearing on Capitol Hill, chaired by Cannon, Internet phone service companies agreed with that stance but the states protested.
Stephen M. Cordi, assistant comptroller of Maryland representing an association of the 50 states' tax administrators, said, "It is expected that up to one-third of traditional voice traffic would migrate to VoIP within five years."
He said that "would have a substantial detrimental revenue impact on states and political subdivisions. It would, in fact, constitute a de facto repeal by the Congress of an entire category of taxes on which states and localities have long relied."
Cordi also such an exemption "would discriminate against other providers of voice communications services using technologies that are subject to tax."
But John J. Langhauser, chief counsel of AT&T's consumer services group, which has launched an Internet phone service called AT&T CallVantage, said, "Imposing today's inflated access charges on nascent VoIP providers would severely impede growth." He called for light-handed regulation.
However, he said the companies realize they still "must meet important social policies. Providing access for the disabled, enabling public safety (911) response and cooperating with lawful requests for information from law enforcement are issues that the industry can and is working to resolve."
James Kirkland, senior vice president of Covad Communications, said Internet phone services could offer revolutionary improvements, if regulation does not interfere.
Comments
- Mitchell called intelligent, controlling 1:19 a.m.
- Brems outlasts 2nd round of votes 1:04 a.m.
- 2 families divided over slaying 1:04 a.m.
- Teen shot in scuffle with trooper 1:03 a.m.
- Nature's Way leaving Utah County 1:03 a.m.
- 'Grandfamilies' a growing trend 12:31 a.m.
- 'Cyber Monday' sales top records 12:29 a.m.
- 2 citations issued at Y.-U. game 12:26 a.m.
- No drugs in driver of Am.F. band bus 12:15 a.m.
- Governor Mansion to begin free tours 12:14 a.m.
- Hall's pain reflects self-betrayal
- Y. student vanished in China
- Max Hall issues apology
- Utes won't respond to Hall
- Hall reprimanded by MWC
- Cougs begin bowl preparations
- Teen shot in scuffle with trooper
- Mitchell called intelligent, controlling
- Matthews passes new Jazz tests
- Daughter: Mitchell fed me my pet
- Hall mouths off about hate of Utah
898 - Cougars beat Utes in overtime
481 - Max Hall issues apology
379 - Hall reprimanded by MWC
370 - Hall's pain reflects self-betrayal
316 - Utes won't respond to Hall
257 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
120 - Religion in politics is tiresome
110
Live 'Twittologue' Dec. 2, 4:00 p.m. with Jason Chaffetz. Click for more.
I wanted to tell them not to go. I dropped subtle hints. "My money is on...
When I was a kid, I worshipped my grandpa. He was undoubtedly my hero....
There are some games I love not on your list. Arkham Asylum for one.
Our parents made my brothers help kill and clean our rabbits before we ate...
Why would you keep it open? I would understand if there was a lot of amazing...
The government will run our health care well? Read Reader's Digest, November...
TCU stomped on the MWC so they are naturally ready to crush Florida, Alabama...
could you understand Dave Locke any more than my mom does and she is not even...
Attending the ND/BYU game 3 years ago in south bend, a couple of things stuck...
I missed the game, actually i heard a little bit of Locke on the radio (man...
quotes were good: Article was dumb and unnecessary.
I believe the art depicting Joseph looking at the plates may possibly be...


You can be the first to comment on this story.