RealTime IT News

Bush Signs 2-Year Tax Ban Extension

As expected and with a simple statement declaring that holiday shoppers will not be burdened by new taxes on their online purchases, President Bush has signed a two-year extension of the ban on new Internet taxes.

In his statement, Bush said: "Online spending is estimated to account for 15 percent of total holiday purchases this year. The bill will protect American consumers from an unwanted tax surprise when they purchase gifts online for friends and family."

The ban had expired last month when lawmakers couldn't agree on provisions for the collection of sales taxes on online purchases, which remains a thorny issue. A coalition of states is in the process of simplifying their tax codes with the hope that Congress eventually will allow them to collect sales taxes on remote sellers.

Computing technology industry group CompTIA welcomed the presidential signing of "The Internet Tax Nondiscrimination Act," calling it a great holiday gift for American consumers, and urged lawmakers to deliver yet another present - a pro-consumer, pro-business investment economic stimulus package - before Congress leaves for the holiday recess.