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May 25, 2007 10:19 AM PDT

Week in review: The taxman cometh back

If you once scoffed at those e-mails warning of an e-mail tax, brace yourself: you may soon be paying a lot more to use the Internet.

The era of tax-free e-mail, Internet shopping and broadband connections could end this fall, if recent proposals in the U.S. Congress prove successful. State and local governments this week resumed a push to lobby Congress for far-reaching changes on two different fronts: gaining the ability to impose sales taxes on Net shopping, and being able to levy new monthly taxes on DSL and other Internet-service connections. One senator is even predicting taxes on e-mail.

Pro-tax advocates this week advanced a flurry of proposals pushing in that direction. A bill was introduced that would usher in mandatory sales tax collection for Internet purchases. Then, during a House of Representatives hearing the same day, politicians weighed whether to let a temporary ban on Net access taxes lapse when it expires on November 1. A House backer of another pro-sales tax bill said to expect a final version by July.

The response to the moves in CNET News.com's TalkBack forum was overwhelmingly negative, mostly along antitax convictions. However, some readers took a bigger-picture approach to the situation.

"Half the reason the Internet has become so successful is because the government has had little involvement," wrote one reader to the forum.

The U.S. Congress is also poised to create a set of massive new government databases that all employers must use to investigate the immigration status of current and future employees or face stiff penalties. The so-called Employment Eligibility Verification System would be established as part of a bill that senators began debating on Monday. The procedure that is likely to continue through June and would represent the most extensive rewrite of immigration and visa laws in a generation.

Because anyone who fails a database check would be out of a job, the proposed database already has drawn comparisons with the "no-fly list" and is being criticized by civil libertarians and business groups.

All employers--at least 7 million, according to the U.S. Chamber of Commerce--would be required to verify identity documents provided by both existing employees and potential hires, the legislation says. The data, including Social Security numbers, would be provided to Homeland Security, on penalty of perjury, and the government databases would provide a work authorization confirmation within three business days.

Crime and punishment
In their third effort to enact a federal law targeting spyware, members of the U.S. House of Representatives overwhelmingly approved criminal penalties aimed at anyone implanting certain types of malicious software on computers. The bill, called the Internet Spyware Prevention Act, or I-Spy for short, punishes anyone who intentionally causes software "to be copied onto" a computer--and damages it or steals personal information--with fines and up to five years in prison.

Among other things, the I-Spy Act attempts to make it unlawful to engage in various means of "taking control" of a user's computer, to collect personally identifiable information through keystroke loggers, and to modify a user's Internet settings, such as the browser's home page. It also includes a broad prohibition on collecting information about users or their behavior without notice and explicit consent.

In a reversal, MySpace.com unveiled a plan for cooperating with requests from state attorneys general for data pertaining to registered sex offenders. MySpace initially asserted it was legally unable to comply with the requests set forth in a letter sent earlier this month from the attorneys general of eight states. It appears, however, that an accord was struck late last week.

See more CNET content tagged:
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Add a Comment (Log in or register) 24 comments (Showing first 20 comments)
Start Writing YOUR Congressmen now!!!!!
by aaroberts May 25, 2007 11:51 AM PDT
And tell them to back the &^%$ off and stop taxing us wherever we go. If we let these bastards in now we'll never be rid of them.

Write!
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Mark of the Beast
by Madvac2005 May 26, 2007 1:20 AM PDT
This is how the bible explains the government will take more control. This is part of the mark of the beast. Its against our privacy and more. How can they do this. Suprised we havent had a overthrow in this country.
Reply to this comment
I Love to Pay Taxes to My Government
by copakeman May 26, 2007 5:38 AM PDT
Please tax me more. Government please tell me where to send all my money to. Taxes are great. Taxes are wonderful. If it weren't for taxes, I wouldn't know what to do with MY money. Tax me, tax me, tax me.
c
Reply to this comment
More Tax
by JamesMK May 26, 2007 6:02 AM PDT
This is the best Country in the world! Downside is Government. Crooked Politicians and the ongoing way they systematicly screw the public to become richer. Best Country (Semper Fi) One of the worst Free World Governments.
Reply to this comment
what the
by jg_rat May 26, 2007 11:32 PM PDT
Land of the free?
You're fired because Big Brother can't find you in the database?
what a weird country
Reply to this comment
ANSWER: CELL PHOONE REVOLUTION
by jack1260 May 27, 2007 9:55 AM PDT
Since all software program coding is done in order to be reduced to permanent read only memory chips, anyway, I see no need in crying over spilled milk.

If the hacker bullies didn't kill the web then the government tax men did. It's a sad ending for a story about a new age dinosaur, the Personal Computer. Sorry MAC! GoodBye MSN! See you later, Yahoo! Oh! GOOGLE! What shall we do?



(personally I enjoy the web)
Reply to this comment
creates tech jobs
by bcroner May 27, 2007 12:25 PM PDT
In order to keep up with the new government legislation, a lot of people with tech skills will have to be employed to help companies hook in correctly to the new immigration database and to correctly account for tech activity that can be taxed.
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Immigration and taxes
by tinkertomshop May 28, 2007 2:01 AM PDT
Sure, write your congressman about something that only rated #5 on our readers list. Does the public really care that they are taxed off the internet or that immigrants are fired? Apparently not. Wait until the price of ketschup hits $10 a bottle and we all have to prove that we "were born in east LA" to keep our jobs. Wait until the internet splits into a fast "business/gov/mil" net with privledges for the rich, and a crawling slow crowded crashnet for those who can only pay $100/month. The 60's dream of power to the people which generated the free web will finally be a thorn removed from those who fear it. Write a congressman, it will make you feel better, but it is too late: they are already here.
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Don't they already tax the internet?
by mattumanu May 28, 2007 5:22 AM PDT
Doesn't the federal and state governments already levey taxes on Internet services?
Reply to this comment
Taxes
by sdicenso May 28, 2007 7:48 AM PDT
Isn't it time we get some intestinal fortitude and throw these bums
out. all of them. They are so easy when it come to taxing us. Lets
see how easy they are when we vote to throw them out and cut
their salaries. The only way we are ever going to beat them is to
ban together. THat will never happen.
Reply to this comment
No wonder!
by wbenton May 28, 2007 8:34 AM PDT
No wonder they don't want to get rid of SPAM... the IRS is probably looking to make a killing from spammers.

Who knows, if they tax each SPAM sent... we could entirely deplete the deficit in one year. (* CHUCKLE *)

FWIW
Reply to this comment
Galge at What we Use Most
by erixgirl86 May 29, 2007 8:56 AM PDT
all this is is people just galging at what we use most such as gas, and now even the internet. it's like history is repeating itself with how people were once taxed to hell and back, and now it's happening again. why not tax us for breathing too, we HAVE to have air. and whats worse is "we the people" have no say so in it, because everytime some of us want to say something or do something, nobody takes it seriously. it's just going to get worse if we don't stand united on this and remind politicians on WHO put them there in the first place and who can vote them out.
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Read More on the Political Dynamics
by Giselle411 May 31, 2007 9:12 AM PDT
Read more on the political dynamics of the Internet tax fight here: http://article.nationalreview.com/print/?q=MmQ3NWNkZTgxMDNiNGE0MGIxMGVhZmYzNDY5NTlhNmQ=

It links you to the article "An Odd-Bedfellow Coalition: Republicans and (many) Democrats see eye-to-eye on Internet-access taxes."
Reply to this comment
And so, the end of days are upon us.
by ddhboy June 1, 2007 2:31 PM PDT
Oh internet, you were so new 10 years ago, you started a set of business types not possible before your use in the average American home. You gave us such internet gods as Amazon.com, Google, and with web 2.0, Youtube. Surely in 2007 you have reached your peak. And sadly, you have reached your peak, and do you know what that means? Your on your way to death. Ah yes, Mr. Taxman, Google's Big Bro ambitions and the death of net neutrality will surly be your downfall. Though it would be virtually impossible to actually tax e-mail (everyone will just jump ship to e-mail sites based in other countries)it would show that the government has stepped in far too much into the internet. It wouldn't be long till say, connections will be taxed based on how long the connection is live, that popular websites would have to pay some sort of bandwidth tax and that an FCC system would fall upon podcasts and sites such as YouTube. When these things happen, surely, the internet in America will be corrupted. Until then, ***** to your councilman/woman as much as possible.
Reply to this comment
Taxing me for Spam???? They don't dare!!!
by JKFentiman June 3, 2007 12:00 PM PDT
If they start taxing me for all the spam I get, I will be one angry taxpayer. Tax the senders NOT THE RECEIVERS.
Reply to this comment
YouTube video on Net Taxes
by Giselle411 July 11, 2007 6:24 AM PDT
Watch the video here: http://youtube.com/watch?v=ts8Tikq9Czk
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