Congress considers whether to ban tax on internet service

NATIONAL (NBC) - How much do you pay for Internet service - $20 a month, $50 or $60 for a high-speed connection? 0r maybe you simply can't afford it?

If Congress doesn't act soon, your city or state may be able to tack-on a few extra dollars and tax what you're already paying.

The debate is over whether to extend a nine-year-old ban on taxing internet service. It now looks like the ban will continue saving users a few dollars.

But the question is, for how long?

Right now, most cities and states can't tax your internet service. But that ban expires November first.

On Tuesday the house passed a four-year extension, hoping to keep the tax door open.

David Quam of the National Governors Association said, "The temporary extension lets everybody come back, revisit this policy in case changes have to be made."

But there's a strong push in the Senate to make the ban permanent.

"We've got an obligation to make sure the Internet is not taxed," said New Hampshire Senator John Sununu.

Supporters say the poor already can't afford to go online.

Only 11% of families earning under $30,000 have the Internet at home.

That's compared to almost two-thirds of those earning six figures.

David Sharlin, who uses free Wi-Fi at his local coffee shop, supports a tax.

"I don't see my cup of coffee going up based on a couple of dollars that maybe the coffee house behind me is going to get," said Sharlin.

For many though, the issue isn't money, it's access.

Internet user Emily Howells said, "I think in this day and age the Internet is universal and everybody should have access to it."

Estimates predict a tax could increase your monthly service charge 15 to 30 percent.

Posted by Chantelle Janelle