House Judiciary Committee to Move on Internet Tax Freedom


Amy McLean

We have good news on a topic I know a lot you care about: taxes.

This week, the U.S. House Judiciary Committee formally announced it will mark up H.R. 3086, the Permanent Internet Tax Freedom Act (PITFA) tomorrow, which is a huge step toward the bill being put to a vote.

As we blogged about last week, extending the moratorium on taxing internet access is crucial to ensuring that Americans have affordable and wide-spread access to the Internet.

In the past, this bill has been extended, but only temporarily.  The moratorium is set to expire on November 1st of this year, unless Congress acts to extend it.

We hope the House Judiciary Committee members support a permanent extension of the Internet Tax Moratorium for a number of reasons:

  • Broadband is a national priority and making this legislation permanent would reflect that priority.
  • The Internet Tax Freedom Act (ITFA) is current law which temporarily protects consumers from getting hit with taxes when accessing the Internet. This law has helped the digital economy grow, add jobs and support consumer broadband adoption.
  • Other federal laws that regulate how interstate commerce is taxed are ALL permanent (e.g., federal rules and regulation of state/local taxation of air transportation charges, interstate bus services, railroads, fuel taxes, pension income and wireless tax revenue sourcing to name a few…)
  • Internet access isn’t just a consumer service, it’s a “business input” allowing the business sector to be more productive and efficient.

When it comes down to it, taxes on information and communications technology generally have a larger negative impact on growth than taxes on other industry sectors. Why would we want to negatively impact a strong driver of growth by excessively taxing this innovative sector and the hundreds of millions of Americans who access the Internet regularly?

We hope the House Judiciary Committee does the right thing tomorrow by passing a permanent extension of this legislation, and that Congress passes the bill in the very near future.

You can make your voice heard by writing your members of Congress in support of this bipartisan, consumer-friendly bill.

Take action now!

 


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