A recent congressional report saying that new taxes could be levied on all Internet and data connections is pitting two influential groups of (American) Republicans against each other.

Sixteen members of Congress have slammed a suggestion from Congress' Joint Committee on Taxation that a tax originally created to pay for the Spanish-American War could be extended to all Internet and data connections this year.

In a letter to the committee sent Tuesday, the House members said they were "perplexed" that the committee would "gratuitously suggest tax increases" that would slow the growth of the U.S. economy. The committee is headed by two Republicans, Sen. Charles Grassley of Iowa and Rep. William Thomas of California.

"Consumers who now enjoy freedom from regressive taxes on Internet access are not tax cheats," the letter says. It charges the committee with finding ways to justify tax hikes when its report was supposed to be about identifying people who were dodging taxes.

Source: Cnet News
Does anyone know if this tax includes the individual at home?, or just businesses? If it does include businesses, just the big ones? or SME's too?

I agree with taxing the big businesses, well they can afford it!. however, Bush on the other hand would probably disagree, as his past track record has proven.
This is a terrible idea. This is supposed to be the age of Information Revolution. Imagine 19th century governments put a tax on steam - we'd all still be living in mud-floored houses eating turnips while simultaneously dieing of Botulism.