Memo on Internet Taxing
July 7, 2008
(Editor's Note: The following is a memorandum regarding a vote for legislation to prevent internet taxing.)
October 30, 2003
A few senators have expressed surprise when I have said that a vote for legislation preventing states from taxing Internet access is a vote for an unfunded federal mandate.
According to Sections 421 through 428 of the Budget Act (see the attached report from the Congressional Budget Office), an unfunded mandate occurs in this case because Congress would be preventing states from collecting at least $80 - $120 million they are now collecting.
Sixty-four senators now serving voted in 1995 to ban unfunded federal mandates.
I thought the attached short memorandum might also be useful to you as you consider this issue.
Enclosures: CBO Report