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Action: Keep Internet Service Tax-Free |
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On November 1st, the ban on taxing Internet service is set to expire. The ban was originally implemented in 1998, in order to encourage the proliferation of Internet access. If a compromise is not reached by November 1st, prices for Internet service nationwide could jumpâ€â€as high as 17 percent, according to ISPs. There are currently two competing alternatives being considered in the Senate:
1) S. 1453 - Internet Tax Freedom Act (ITFA) Extension Act of 2007
This bill, introduced by Senators Carper (D-DE) and Alexander (R-TN) would: extend the ban for four years, but would permit states to collect taxes on internet access levied before the imposition of the moratorium in 1998.
2) S.156 - Permanent Internet Tax Freedom Act of 2007
This bill, introduced by Sen. Ron Wyden (D-OR), would extend the tax moratorium indefinitely. It’s supporters include Google, Verizon, AT&T and about 20 Republican cosponsors.
Senator John McCain, who is a cosponsor of the of the Carper-Alexander bill, proclaimed last week:
In a little over a month, Americans will be forced to pay more to access the Internet, receive e-mails on their BlackBerries and use the Internet on their cell phones if the Democratic leadership refuses to allow the Senate to debate and pass this legislation.
Other opponents of the permanent ban, such as some state and local governments, argue that:
the moratorium and possible permanent ban on Internet taxes robs them of revenue sources to fund their programs. Such a permanent extension would “make it difficult for states and localities to continue to secure revenues needed to fund health care, education, public safety and other critical services,†according to the Center on Budget and Policy Priorities.
While I feel a bit comfortable coming out on the side of 20 Republican Senators, AT&T and Verizon, I’m confident that the Wyden bill is the way to go. As J-Ro wrote earlier today:
Internet access should be treated like any other utility. It is a necessity for citizens to be fully involved in society. To be treated as such, it needs to be universally accessible, universally affordable, and completely net neutral.
Although a permanent ban on the taxation of Internet service does not solve all of our problems, it is a step in the right direction. If we allow state and local governments to wage a tax on our Internet access, it will become even less affordable than it already is.
Don’t Tax Our Web has a handy online petition you can use to contact your Representative and Senators. Do so now and tell them to support the Wyden bill to permanently ban taxes on Internet service.
Consumerist is indicating that this is set to be resolved on Thursday, though I can’t verify this.
Off the top, I’d agree with the Wyden bill. A permanant moratorium is a good thing IMO. It can always be repealed later, so why not?
Keep the internet free and accessible
“Internet access should be treated like any other utility.”
UM…Most of my utility bills include taxes.
We already pay substantial federal and state government taxes, fees, and surcharges on our internet bill and this additional slate of taxes set to be be slapped on subscriber’s bills is nothing more legalized theft at gunpoint that will cripple and kill internet commerce as well as reduce internet access for those who already strain to pay their internet bills as is. The corrupt federal government already has their greedy, rotten meat hooks in our cable, phone, and internet services and we don’t need anymore as we pay far more than enough already.