Oregon Senator Wants to Ban Internet Tax Forever

If the moratorium is allowed to lapse, the web would be left unprotected from state and local taxes which will have a stagnating effect on the American economy Smith said.

Senator Smith addresses a meeting of the Republican High Tech Taskforce. Photo courtesy: Office of Senator Gordon Smith

(WASHINGTON, D.C.) - Oregon Senator Gordon Smith, Chairman of the Senate Republican High Tech Task Force, is calling for immediate action to permanently ban taxes on internet access.

Senator Smith and fellow members of the Task Force championed the ban, which is set to expire in just over a month. The ban is essential to the continued growth and success of the Internet.

“People use the Internet to access information and purchase goods and services,” said Smith. “It is inappropriate to tax someone for walking into a library or a shopping mall. By that rationale, we should not be taxing the Internet.”

Since the moratorium was first adopted in 1998, tremendous investment, growth and innovation in the scope and use of the Internet have occurred.

By preventing unnecessary taxation of the Internet, Congress promoted the continued expansion of technology and e-commerce.

If the moratorium is allowed to lapse, the web would be left unprotected from state and local taxes which will have a stagnating effect on the American economy.

The telecommunications industry is already one of the most highly taxed industries, often times with taxation rates higher than so-called “sin” products.

“Congress has very little time to act before the Internet access becomes vulnerable to burdensome taxation. Internet access helps children in school, bolsters local businesses, and encourages innovation,” Smith said. “We must extend this moratorium and keep the Internet free of taxes.” The Senate Commerce Committee, of which Sen. Smith is a member, will consider the Permanent Internet Tax Moratorium Act (S. 156) later this fall.
Source: Office of Senator Gordon Smith

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Unfortunately, not as simple as it is made to seem. New practice of "bundling" by service suppliers is in part to force new approach on taxes, already in place for some of the services involved here, relieved of that burden if this done in perpetuity. Major other-parties, such as Governors association and an assortment of public interest groups, seeking extension of current status, to allow for rational, reasonable work-out on tax picture much more complex than reported here. moresoon on this, still in work for information.

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