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Permanent Internet Tax Freedom Act - Internet Caucus Co-Chairs Support Internet Tax Freedom Act
While the debate on "Net Neutrality" rages on, there are yet a few legislators concentrating on real issues surrounding the internet and the web.
Permanent Internet Tax Freedom Act
On January 31 Congressional Internet Caucus Co-Chairs Bob Goodlatte (R-VA) and Rick Boucher (D-VA) joined Representative Anna Eshoo (D-CA) in introducing the Permanent Internet Tax Freedom Act. This bipartisan legislation was introduced with over 30 cosponsors.
The Internet Tax Fairness Act of 1998 created a moratorium on state and local Internet access taxes and multiple and discriminatory taxes on e-commerce. As a result of this moratorium, the Internet has remained relatively free from the burdens of new taxes. The moratorium has been extended on numerous occasions. However, without further action by Congress, the moratorium will sunset in November 2007, subjecting the Internet to possible taxation from more than 7,500 taxing jurisdictions.
The Permanent Internet Tax Freedom Act ensures that the Internet remains free from restrictive taxation by making the tax moratorium permanent.
"I have long supported efforts to eliminate Internet access taxes and other discriminatory taxes on electronic commerce. Such taxation would create onerous and unfair burdens on industry, hinder technological development, and slow economic growth," said Goodlatte. "Ultimately this legislation will help facilitate growth and job creation throughout the nation."
"This important measure will preserve consumer choice and the openness which has characterized the Internet to date by permanently eliminating potential Internet access taxes," said Boucher. The moratoriums previously enacted by Congress have contributed greatly to the expansion of Internet access and online innovation, and it is highly appropriate to act now to ensure that future growth is not stifled."
Excessive taxation and regulation will hamper the Internet's tremendous growth and stifle investment in small businesses that utilize this tremendous medium. In addition, the last thing that consumers need is for the puzzling array of state and local taxes on their phone bills to be repeated on their Internet service bills. In addition, taxing Internet access will increase the costs of households going on-line and result in a greater disparity between those households that can afford to go on-line and those that cannot.
The Permanent Internet Tax Freedom Act will encourage continued investment in and utilization of the Internet by permanently banning state and local Internet access taxes. This legislation is forward-looking and will provide the certainty that businesses need to make calculated decisions regarding the ways in which they will utilize and invest in Internet technologies.
The Permanent Internet Tax Freedom Act has been referred to the House Committee on the Judiciary, on which Reps. Goodlatte and Boucher serve. Companion legislation has been introduced in the Senate by Senators Wyden, McCain, Leahy, and Sununu.
From
* Congressman Bob Goodlatte
* Senator Patrick Leahy
* Congressman Rick Boucher
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