Permanent Internet Tax Freedom Act

Filed as General, News on January 6, 2007 4:22 am

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From Infoworld, a new law is introduced to permanently ban Internet tax (Permanent Internet Tax Freedom Act).

Democrat Ron Wyden of Oregon, Republican John McCain of Arizona and Republican John Sununu of New Hampshire introduced the Permanent Internet Tax Freedom Act Thursday, the first day of business for the new U.S. Congress. The bill, in addition to permanently banning taxes on Internet access, would prohibit states from taxing online purchases if they don’t also tax catalog or phone-based sales.

If Congress does not extend the ban, consumers could face significant increases in the cost of Internet service, Wyden said in a statement. “Why should a product that’s not taxed on the street or taxed in a store be taxed on the Internet?” Wyden said. “It’s unfair, anticompetitive and would greatly harm one of the booming sectors of our economy.”

There have been previous attempts in the House of Congress on a temporary ban since 1998. It has been extended twice since then and the current one expires in 11 months. The Information Technology Association of America (ITAA) and the United States Telecom Association lauded the bill to permanently ban Internet-only taxes.

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