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        October 21st...Going, Going, Gone!

Something big...very big...happened on the eve of October 21st. 
Did anyone catch what happened?  Did you notice?

Okay, it may have been uneventful.  It hardly even made the 
big news, but it will undoubtedly affect you and your online 
business.

What happened?

The Internet Tax Moratorium, the Internet Tax Freedom Act, 
expired.

Does that mean you will have to start paying online taxes and 
other discriminatory taxes on the internet?

No, because the U.S. House of Representatives did the right 
thing last week.

Let me explain...

There's been talk since the internet started going commercial 
about taxing the internet.  We, the under funded little guys, 
have been a bit concerned for what it would mean to us.  The 
ramifications could put a small business out of business.  
Certainly, it could discourage online spending.

After all, with more than 30,000 taxing laws in the U.S. and 
roughly 7,600 taxing jurisdictions in different states, the 
tax system is a mess.  It would become a compliance nightmare.

There's nothing new about the idea of taxing the internet.  
There has been talk and committees formed before most of those 
reading this article had anything to do with the internet.  
Several moratoriums extended internet taxation.  The last 
ended the eve of Sunday, October 21st.

Nevertheless, With all the events of the past month and with 
the economy dipping, when Senator Dorgan (D-ND) attempted to 
bring internet taxing legislation to the floor so that it 
could be voted on before the moratorium expired, he failed.  
Thus, the moratorium quietly slipped away.

Does this mean we will NOT have new tax collection obligations?

Yes...at least for the time being.

It seems that Congress has more pressing things on its mind 
than the fate of e-commerce at the moment.  That is good for 
us.  But that doesn't mean we have another five years of 
internet tax freedom.  As spokesman for Senator Dorgan asserts, 
"Things are not likely to change quickly.  There's no rush to 
put these taxes in place."

Thank goodness for this.  Varied and strenuous tax collecting 
obligations could be disastrous at this time with the economic 
dip.

But, this doesn't mean the relief will last forever.  In fact, 
we have no promise as to when the internet taxing issue will 
come up again.

Frankly, I think the internet tax ban should be made 
permanent.  The real solution is to work towards tax relief, 
not adding taxes.  Out-of-state business shouldn't be 
compelled to collect sales taxes except for their local 
jurisdictions.

But, the biggest question that still festers in my mind is, 
"How can the U.S. enforce taxes on something that doesn't even 
belong to them?"  Who does the internet belong to?  Certainly, 
not the U.S.  Yet, U.S. Congress wants to regulate internet 
business.  Sigh.

The internet belongs to enterprising people and associations, 
collectively, worldwide, not one governing body.

With the moratorium lifted, the internet taxing issue is up 
for grabs again.

If you care to encourage your U.S. Senators to keep the 
internet tax free, you can search your Senator's email 
address at http://www.senate.gov/contacting/index.cfm .

------
Note: You have permission to reprint this article in its 
entirety with the author's credits below.

About the Authors: 
Heidi and Dave Perry are successful entrepreneurs and founders 
of HomeBusinessOnline.com and PrettyGreat.com.  Sign up for 
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_____DAVE AND HEIDI RECOMMEND_______________

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_____KIND THINGS YOU HAVE SAID______________

Coming from a professional like Judy, this is a real 
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  Heidi, 
  
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