Make Internet tax moratorium permanent

Published 11:01 am Thursday, August 7, 2014

The current temporary federal moratorium on Internet taxes expires Nov. 1, and both the House of Representatives and the Senate need to make that moratorium permanent. The moratorium, which has kept the Internet mostly free from government regulation and taxation, has been in effect since 1992.

The House recently acted decisively in passing H.R. 3086, the Permanent Internet Tax Freedom Act, without amendments. The bill is now in the Senate for consideration.

However, some Senate Democrats only want to extend the moratorium temporarily, and tack onto it an amendment to create an online sales tax on Internet access and many devices. That’s a bad idea.

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One reason the Internet has blossomed and been such an economic powerhouse for this nation is that it has been kept mostly tax free and lightly regulated. There is nothing more ruinous to free enterprise and our economy than heavy-handed government taxation and burdensome regulation.

We urge the Senate to pass the House bill, without amendments or taxes, make the moratorium permanent, and keep the Internet a shining example of free enterprise at its best.

Tom Schatz, president of the Citizens Against Government Waste, a nonpartisan, nonprofit organization, said it is crucial to make the moratorium permanent.

“The Internet has become a vital contributor to the global economy; keeping access tax-free is essential for continued economic growth,” Schatz said. “CCAGW applauds the strong bipartisan House vote to protect taxpayers from unnecessary, discriminatory, and burdensome fees and taxes on Internet services, which would stifle an already struggling economy and discourage many families and individuals from using the Internet.”

The House bill had 228 co-sponsors, both Republican and Democratic, and it was passed on a voice vote. Such bipartisan cooperation is a rarity in today’s highly partisan atmosphere in Washington.

It would be a disaster for our economy to allow the moratorium to lapse — which could subject many common devices such as smartphones and tablets and Internet access through traditional line methods — to be subject to additional taxes.

Let’s not let that happen. Urge the Senate to make the Internet tax moratorium permanent.(MGNonline)