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Washington, DC: Congressman Bob Goodlatte joined President Bush at the White House while the President signed H.R. 3678, Internet Tax Freedom Act Amendments Act, into law. This legislation extends the ban on Internet access taxes an additional seven years.
The Internet Tax Fairness Act of 1998 created a temporary moratorium on state and local Internet access taxes. As a result of this moratorium, the Internet has remained relatively free from the burdens of new taxes. The moratorium has been extended on numerous occasions but is set to expire in November, subjecting the Internet to possible taxation from more than 7,500 taxing jurisdictions.
Goodlatte was asked by the President to join the signing ceremony because he is widely regarded as a leader in the effort to permanently ban Internet access taxes. Earlier this year, Congressman Goodlatte introduced bipartisan legislation, the Permanent Internet Tax Freedom Act, which would help keep the cost of purchasing Internet access as low as possible for all Americans by permanently preventing the confusing taxes on consumers’ telephone bills from being repeated on their bills for Internet service.
“While I supported this temporary extension and believe it is a step in the right direction, I was disappointed that the bill only extended the moratorium for seven additional years, rather than making it permanent,” said Goodlatte. “A permanent ban would create the tax certainty that Internet access providers need to decide to make the investment to extend their broadband services to more rural and suburban areas and inner cities that they do not currently serve.”
A permanent moratorium will help to bridge the digital divide between those who can afford Internet access and those who cannot. It is estimated that only 11% of U.S. households with incomes of less than $30,000 have high-speed Internet service, as opposed to 61% of households with incomes over $100,000. Taxes on Internet access will increase the costs of households going online, as the prices for providing Internet access service increase. Without a permanent moratorium on Internet access taxes the digital divide between those who can afford to go online and those who cannot will become greater.
Goodlatte continued, “I have long supported efforts to eliminate Internet access taxes. Such taxation would create onerous and unfair burdens on industry, hinder technological development, and slow economic growth. Ultimately any ban on Internet access taxes will help facilitate growth and job creation throughout the nation.”
President Bush signs the bill with Rep. Bob Goodlatte, Rep. Lamar Smith, Sen. John Sununu, Rep. Chris Cannon, Rep. Anna Eshoo, Sen. Tom Carper, and Sen. Lamar Alexander.
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