Congress Moving to Extend Cyber Tax Ban

A ban on taxes that target the Internet expires this weekend, but Congress is moving to extend it.

The House of Representatives passed a bill this week that would extend the ban for two years, but the Senate was unable to reach an agreement.

Analysts and lawmakers say it’s unlikely that state and local governments will rush to impose Internet taxes. But given time and an increasing need to raise revenue, that could change.

“Starting Monday, there’s an opportunity for considerable economic mischief,” said Sen. Ron Wyden (D-Ore.), who has introduced a bill similar to the House measure.

There is concern that tax officials around the country could begin interpreting current tax laws as applying to the Internet, imposing taxes on users’ monthly bills. Some lawmakers say that would add to the nation’s economic woes.