Since its initial enactment in 1998, the Internet Tax Freedom Act (ITFA) has banned federal, state and local governments from taxing Internet access charges, as well as from assessing multiple or discriminatory taxes on electronic commerce. The stated purpose of this law was to “ … promote and preserve the commercial, educational, and informational potential of the Internet.” This purpose is even more valid today. However, the moratorium, which has been extended five times since its enactment, is now set to expire on October 1, 2015.
It’s time to extend and make ITFA permanent. While temporary extensions since 1998 have been politically expedient, it is now time to make this ban permanent to avoid future uncertainty for all.
TechAmerica supports the Permanent Internet Tax Freedom Act (H.R. 235). If the ban is allowed to lapse, state and local governments could move to enact taxes on Internet access, as well as other Internet-related activity, such as bit taxes, bandwidth taxes, or email taxes. Also, most Internet Service Providers, which are not currently collecting sales taxes on Internet access charges, would have to establish internal systems to collect and remit sales taxes. This would increase compliance costs for Internet Service Providers and would increase taxes for all Internet users.
The Internet has brought astounding changes to both our economy and our daily lives. We now learn, shop, do business and communicate with friends and family online. The Internet provides a dynamic mode of communication for our American society, as well as our neighbors around the world. Accordingly, we believe that access to the Internet should remain unburdened by taxes. We must not allow a patchwork of federal, state and local taxes to restrict access to this essential service.
- See more at: http://www.techamerica.org/pass-the-permanent-internet-tax-freedom-act/#sthash.swM2brU7.dpuf
