Internet Tax Ban to Expire on Sept. 30: Tell the Senate to Act!
. . . Keep Internet Access Tax-Free!
by Thomas A. Schatz: The latest extension of the moratorium on Internet access taxes is set to expire on September 30. If the U.S. Senate fails to act before that deadline, Americans will face a tax hike estimated at $14.7 billion annually!
That’s why I urge you to tell your U.S. Senators to pass S. 431, the Internet Tax Freedom Forever Act.
Since 1998, the Internet tax moratorium has allowed the vast majority of Americans to enjoy tax-free access to the Internet to shop, keep in touch with friends, read the news, pay bills, fill out job applications, take classes, and conduct numerous other activities online.
If this crucial moratorium expires, the new multibillion-dollar tax burden will not only stifle the Internet as a vital engine of economic growth, it will also penalize the tens of millions of Americans who now spend much of their work time and playtime online.
The House of Representatives has already passed H.R. 235 to make the Internet tax ban permanent. However, the Senate has yet to vote on its version of the legislation, and some Senators are trying to saddle it with a controversial measure known as the Marketplace Fairness Act, which would enhance the ability of states and municipalities to collect sales taxes on transactions far outside their borders.
September 30 is rapidly approaching. I urge you, in the strongest terms possible, to Tell Your U.S. Senators: Pass the Internet Tax Freedom Forever Act today!
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Thomas A. Schatz is President of yjr Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste (CAGW), the nation's largest taxpayer watchdog organization.
U.S. Reps Ann G. Eshoo (D-CA-18) and Bob Goodlatte (R-VA-6) authored an op-ed on June 6, 2015 agreeing and promoting "Keeping The Internet Free": Today, a mother can go online to reorder a supply of diapers for her newborn. A father can search for a new job to support his family. A daughter can apply for college. A grandmother can video chat with her grandchildren.
Millions of Americans do these things and more with an Internet connection every day. But imagine this Internet connection being just out of reach. Imagine the opportunity lost, the civic engagement forgone, and the disconnect created between the American way of life and the rest of the world. An impending tax on Internet access could very well make this a reality.
Since 1998, access to the Internet has been tax-free. President Bill Clinton was the first to sign a tax moratorium into law and it has been renewed by Congress every few years since. The current tax moratorium will expire on October 1.
So why is it so important to make Internet access permanently tax-free, and what is Congress doing to make this happen?
Without another renewal from Congress, the doors to discriminatory taxation on Internet access by approximately 10,000 different state and local taxing jurisdictions will be blown open. These entities have every intention of creating new tax revenues for their jurisdictions from Internet subscribers. To be clear, this is not a sales tax on goods bought online. This is a tax that would be levied just to get online.
Internet access is already expensive for millions of Americans who rely on it for communicating, e-commerce, education and research. This month, a nonpartisan Government Accountability Office report said that broadband affordability continues to be the most frequently identified barrier to adopting an Internet connection. Add on an average tax rate of just 2.5 percent to a broadband connection, studies say, and subscribership would be reduced by up to 15 million Americans.
And 2.5 percent is a conservative estimate. Taxes for wireless telephone services average more than 17 percent by comparison. This is not an unrealistic rate for Internet access, should a moratorium lapse.
Taxes on consumer Internet connections would work against our national priority of expanding access and economic growth. We know access to broadband can expand a country's economic output and increase efficiency. Income growth and lower unemployment rates are linked to adoption of broadband in rural areas. And gaps in broadband access cost our country $32 billion annually in lost earning potential and inefficiencies. Why stunt growth and opportunity with a tax on Internet access?
A new tax on Internet access would also disproportionately affect low-income Americans who already have a hard time affording broadband. Today, Internet access in the homes of U.S. families earning less than $25,000 a year is at 48 percent, and less than half of black, Latino and elderly people have Internet access at home.
Last year, Congress approved a one-year extension of this popular law. In 2007, the House and Senate passed an extension unanimously, an unheard of feat in today's Congress.
This month, the House unanimously passed H.R. 235, the Permanent Internet Tax Freedom Act. This bill has nearly 200 bipartisan cosponsors and the strong support of the communications, Internet and e-commerce industries. Most importantly, this legislation provides certainty to Americans that access to the Internet will remain tax-free permanently.
This sensible and effective bill, of which we were lead co-sponsors, now awaits a vote in the Senate. It will help to keep broadband affordable for millions of consumers and businesses. It will keep the Internet a pathway to jobs, customers and global commerce for citizens and "mom and pop" storeowners. It will keep the Internet a foundation for innovation in every sector of the economy, including education, healthcare, manufacturing, news and entertainment. And this bill will keep the Internet a platform for civic engagement.
It's time to get this one down in permanent ink.
Tags: Keep Internet Free, Senate action needed, S. 431, the Internet Tax Freedom Forever Act, House passed, H.R. 235, the Permanent Internet Tax Freedom Act To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
by Thomas A. Schatz: The latest extension of the moratorium on Internet access taxes is set to expire on September 30. If the U.S. Senate fails to act before that deadline, Americans will face a tax hike estimated at $14.7 billion annually!
That’s why I urge you to tell your U.S. Senators to pass S. 431, the Internet Tax Freedom Forever Act.
Since 1998, the Internet tax moratorium has allowed the vast majority of Americans to enjoy tax-free access to the Internet to shop, keep in touch with friends, read the news, pay bills, fill out job applications, take classes, and conduct numerous other activities online.
If this crucial moratorium expires, the new multibillion-dollar tax burden will not only stifle the Internet as a vital engine of economic growth, it will also penalize the tens of millions of Americans who now spend much of their work time and playtime online.
The House of Representatives has already passed H.R. 235 to make the Internet tax ban permanent. However, the Senate has yet to vote on its version of the legislation, and some Senators are trying to saddle it with a controversial measure known as the Marketplace Fairness Act, which would enhance the ability of states and municipalities to collect sales taxes on transactions far outside their borders.
September 30 is rapidly approaching. I urge you, in the strongest terms possible, to Tell Your U.S. Senators: Pass the Internet Tax Freedom Forever Act today!
-----------
Thomas A. Schatz is President of yjr Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste (CAGW), the nation's largest taxpayer watchdog organization.
U.S. Reps Ann G. Eshoo (D-CA-18) and Bob Goodlatte (R-VA-6) authored an op-ed on June 6, 2015 agreeing and promoting "Keeping The Internet Free": Today, a mother can go online to reorder a supply of diapers for her newborn. A father can search for a new job to support his family. A daughter can apply for college. A grandmother can video chat with her grandchildren.
Millions of Americans do these things and more with an Internet connection every day. But imagine this Internet connection being just out of reach. Imagine the opportunity lost, the civic engagement forgone, and the disconnect created between the American way of life and the rest of the world. An impending tax on Internet access could very well make this a reality.
Since 1998, access to the Internet has been tax-free. President Bill Clinton was the first to sign a tax moratorium into law and it has been renewed by Congress every few years since. The current tax moratorium will expire on October 1.
So why is it so important to make Internet access permanently tax-free, and what is Congress doing to make this happen?
Without another renewal from Congress, the doors to discriminatory taxation on Internet access by approximately 10,000 different state and local taxing jurisdictions will be blown open. These entities have every intention of creating new tax revenues for their jurisdictions from Internet subscribers. To be clear, this is not a sales tax on goods bought online. This is a tax that would be levied just to get online.
Internet access is already expensive for millions of Americans who rely on it for communicating, e-commerce, education and research. This month, a nonpartisan Government Accountability Office report said that broadband affordability continues to be the most frequently identified barrier to adopting an Internet connection. Add on an average tax rate of just 2.5 percent to a broadband connection, studies say, and subscribership would be reduced by up to 15 million Americans.
And 2.5 percent is a conservative estimate. Taxes for wireless telephone services average more than 17 percent by comparison. This is not an unrealistic rate for Internet access, should a moratorium lapse.
Taxes on consumer Internet connections would work against our national priority of expanding access and economic growth. We know access to broadband can expand a country's economic output and increase efficiency. Income growth and lower unemployment rates are linked to adoption of broadband in rural areas. And gaps in broadband access cost our country $32 billion annually in lost earning potential and inefficiencies. Why stunt growth and opportunity with a tax on Internet access?
A new tax on Internet access would also disproportionately affect low-income Americans who already have a hard time affording broadband. Today, Internet access in the homes of U.S. families earning less than $25,000 a year is at 48 percent, and less than half of black, Latino and elderly people have Internet access at home.
Last year, Congress approved a one-year extension of this popular law. In 2007, the House and Senate passed an extension unanimously, an unheard of feat in today's Congress.
This month, the House unanimously passed H.R. 235, the Permanent Internet Tax Freedom Act. This bill has nearly 200 bipartisan cosponsors and the strong support of the communications, Internet and e-commerce industries. Most importantly, this legislation provides certainty to Americans that access to the Internet will remain tax-free permanently.
This sensible and effective bill, of which we were lead co-sponsors, now awaits a vote in the Senate. It will help to keep broadband affordable for millions of consumers and businesses. It will keep the Internet a pathway to jobs, customers and global commerce for citizens and "mom and pop" storeowners. It will keep the Internet a foundation for innovation in every sector of the economy, including education, healthcare, manufacturing, news and entertainment. And this bill will keep the Internet a platform for civic engagement.
It's time to get this one down in permanent ink.
Tags: Keep Internet Free, Senate action needed, S. 431, the Internet Tax Freedom Forever Act, House passed, H.R. 235, the Permanent Internet Tax Freedom Act To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
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