If you think the government is trying to reach into the pockets of every Internet user, think again. The U.S. House of Representatives took the first steps to extend an Internet tax moratorium for four years, even though the tech industry wants to permanently bar state and local governments from taxing Internet access. The issue is a hot one because governments are always looking for ways to raise money. And what better way than going after the growing use of the Internet? The U.S. House of Representatives has voted to extend an Internet tax moratorium for just four years, despite calls from the tech industry to permanently bar state and local governments from taxing Internet access. The House voted to pass the Internet Tax Freedom Act Amendments by 405-2 this week. The proposal would extend the moratorium on Internet access taxes and other taxes unique to the Internet until November 2011. But don't breathe a sigh of relief yet. The Senate still has to pass the same measure. And the House bill narrows the definition of Internet access, allowing state and local governments to tax Internet-related services such as VoIP.

For more on net taxation:
- see this Infoworld article [1]