By a vote of 30–4, the House Judiciary Committee approved the Permanent Internet Tax Freedom Act, which would extend indefinitely a moratorium on any taxes imposed upon accessing a broadband network. This bill, if passed and signed into law by President Barack Obama, would force seven states to cease imposing taxes on Internet access.
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“The Permanent Internet Tax Freedom Act is common-sense Internet policy that is a long time coming. Internet access taxes are particularly damaging to the growth of the Internet economy by placing an unnecessary burden on consumers. Often these taxes are proposed in order to encourage broadband deployment, something the market is already handling quite effectively.
“A permanent Internet access tax moratorium would help broadband access and development expand while reducing the need for government broadband spending. Allowing Internet access taxes to increase could quickly make Internet bills resemble cell phone bills, which are taxed higher than almost all other goods and services. Wireless tax rates have reached all-time highs, the Tax Foundation found that almost half the states nationwide now imposing a wireless tax above 10 percent.”
“This is a critical issue of interstate commerce which Congress needs to address immediately by renewing the Internet tax ban. State and local taxes on the Internet would put a burden on non-local and out-of-state providers who don’t have the right to vote on those taxes. The nation’s founders had a term for that: taxation without representation.”
“People need to understand this bill would prohibit taxes on access to the Internet, not taxes on online purchases. The bill deserves strong support because businesses and individuals of all income levels rely on the Internet for so many important activities. Taxing Internet access would make the Internet less affordable, which would make no sense to do.”
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