LA to tax VoIP

TaxhitIn the "won’t they ever learn" category the city of Los Angeles intends to levy a 9% tax on VoIP service.  The last I heard there is a federal moratorium on taxing Internet-based services so I wonder if this is even legal.  It’s headed for the courts for sure I’ll bet.  This measure passed when city officials snuck it onto the ballot and voters approved it with no information about it.  While public safety was cited as the need for the tax the measure does not allocate the additional taxes gathered from telephone bills for that purpose.  Politics as usual in other words.  In case you were worried about them telemarketers get a 50% break on taxes as part of the measure passed.  Only in California.

(Heartland Institute via VoIP Watch)

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