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An Open Letter to the United States Senate: Taxpayers Want Fast Action on the Permanent Internet Tax Freedom Act (S. 156)
October 19, 2007
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write to urge swift consideration of S. 156, the Permanent Internet Tax Freedom Act. This critically important bipartisan bill would make the soon-to-expire moratorium on Internet access taxes permanent. Since its enactment in December 2004, the Internet Tax Nondiscrimination Act has stopped any new taxes or fees, but this protection expires on November 1.
If Congress does not act soon, taxpayers across the country would likely face new Internet access taxes levied by emboldened state and local governments. These new taxes could have a very real impact on family budgets. In fact, an Issue Brief released by NTU found that conservatively, an expiration of the moratorium could mean a cumulative new annual Internet access tax bill of over $3.41 billion, or $58.69 per subscriber. Help keep Internet service affordable by taking these taxes off the table once and for all.
The House of Representatives passed a watered-down extension of the moratorium on October 16, in the form of H.R. 3678. This bill only extends the moratorium until 2011 and does nothing to help taxpayers in states with grandfathered taxes. Surely the Senate can do better by passing S. 156, which would truly keep all taxpayers safe from the threat of Internet access taxes.
Passage of the Permanent Internet Tax Freedom Act would represent one of the most far-sighted examples of tax policy to come out of the 110th Congress. Roll call votes on the passage of S. 156 will be heavily weighted in NTU's annual Rating of Congress.