The internet has revolutionized the way our nation and the world communicate and has unlocked doors for average Americans - allowing them access to information like never before.  This new technology has changed the way we do business, how children learn, and has forever altered the society in which we live.  However, in the not too distant future, potential taxes on this invaluable resource threaten to make the internet out of reach for thousands of Americans.

 

Before we talk about what could happen, let us look at what has been done.  In 1998 Congress enacted legislation temporarily barring state and local governments from taxing the internet. This ban was later renewed in 2001 and again in 2004.  Free of the burdens of taxation, the internet has been allowed to grow in leaps and bounds – increasing usership from 36 percent in 1998 to more than 70 percent today.  Just last week, Congress extended the moratorium on state and locally imposed taxes on the internet by four years.  This is a step in the right direction, but it is still a temporary solution. 

 

Earlier this year, I co-sponsored legislation that would make the internet tax ban permanent.  Unfortunately, House Democrats dismissed this bill and instead only brought a temporary extension to the House floor for a vote.  In committee, House Republicans tried to amend the Democrat bill to include a permanent ban.  Unfortunately, once again this proposal was dismissed. 

 

If the internet tax moratorium is not made permanent and is allowed to expire, Americans could face taxes of up to 20 percent for simply accessing the internet.  The extra fees and charges would impose a restrictive cost for thousands of Americans, including the working poor – barring them from the opportunities and advantages internet access provides.  It would impede distance learning, derail countless internet-based companies and would restrict continued growth of this valuable resource. 

 

According to the National Association of Manufacturers, 75 percent of the growth in productivity in our economy since 1995 can be attributed to investment in communications networks and information technology.  The internet is a conduit not only for our economy’s future growth, but for the enlightenment of a substantial portion of our population.  Its benefits are too substantial to place at risk by levying yet another tax.  Let’s do our nation a favor and make the internet taxation moratorium permanent.