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Internet Tax… What’s That?

It’s no surprise really that it’s the United States leading this charge. They love their taxes, and now they’re trying to tax the internet. So, what does it mean to tax the internet and how might it affect you, should this pass through legislation and expand as the norm across the globe?
Try BullGuard Internet Security 2013, free for 60 days, here! There are many different types of internet taxation, so it’s important to be clear on the definition of each one:
  • Internet Access Tax
This tax relates to the Internet Service Provider (ISP) and the charges they levy on their users.
  • Telecommunications Tax
This is dependent on how you access the internet, whether by phone, ISDN, DSL, cable, wireless or satellite.
  • Bit Tax
Taxation based on internet usage by volume.
  • Email Tax
Estimated to raise $70 billion a year if implemented globally, this tax is based on the volume of email sent and or received. As of right now, the majority of these taxes are banned by the U.S. Internet Tax Freedom Act, but the fact that all of this may be up for debate again means we may have to reconsider our internet usage.  But for now, the only internet tax up for debate is one seeking to equalize the playing field between bricks-and-mortar shop tax regulations and online shop tax regulations. Currently, online retailers don’t collect sales tax at checkout, giving them an unfair competitive advantage over other stores that do have to charge sales tax. In March, Senators voted to endorse internet sales taxes onto the Democratic budget bill, with opponents shouting that the idea is antibusiness; all we can do now is to wait for more updates. Have you heard rumblings in your area about internet tax? What are your thoughts?
Filed under: Tech News

Written by Kirsten Dunlaevy

Kirsten Dunlaevy is a blogger for BullGuard. With a background in advertising and branding she is extremely familiar with the ups and downs of social media and the world of communication. Kirsten is here to educate you on how to navigate all things digital, in a safe and responsible manner. Her other passions are decidedly un-digital, she loves being out on the water and cooking.

More articles by Kirsten Dunlaevy

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