Tell Congress to Ban Taxes on Internet Access for Good!The movement to protect the Internet from predatory taxes began back in 1998, when farsighted
lawmakers enacted a three-year moratorium on new taxes targeted at Internet access services. They knew
that the attempts of sticky-fingered politicians to levy taxes on the Internet would likely "strangle the baby
in its cradle." Based on the ban's success in creating a thriving online environment and keeping the
Internet's entry costs low, members of both political parties voted to extend the tax moratorium in 2001 and
2004.
The current ban that stops taxes expires on November 1, 2007, and opponents are wasting no time in
preventing a continuation of the ban. Government and union officials recently testified in front of Congress
about the need for opening up additional revenue sources -- in other words, being able to tax your Internet
service. Interestingly, they were almost silent about state spending, which increased by 8.6 percent over the
last fiscal year. Why do they need even more of our money?
Past research has shown that consumers have consistently shouldered higher tax burdens on
telecommunications products when compared to taxes on other goods and services. One report found that
the effective tax rate on telecommunications was 14.17 percent in 2005, while general business taxes
totaled 6.12 percent. We don't want this super-high tax rate to prey on our DSL, cable modem, and wireless
Internet services.
The Permanent Internet Tax Freedom Act of 2007 (H.R. 743 and S. 156) would make the soon-to-expire
moratorium on Internet access taxes permanent. It's common sense that any nation seeking to remain
technologically and economically competitive shouldn't punish the very citizens who are reaching out into the
digital realm. Taxpayers need long-term protection from state and local authorities seeking to add taxes to
the various routes we use to access the Internet, and the Permanent Internet Tax Freedom Act would
provide such a safeguard.
We've also produced a short, easy-to-understand online video on the importance of banning Internet
access taxes. You can view the video by clicking
here.
The ban on Internet access taxes ends Nov. 1st. Don't let that happen. You can urge your Members of
Congress to support a permanent ban by clicking here.
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