Congress must act now to permanently
ban Internet taxes
By Senator John Sununu
Most Americans look to the Internet and see an engine for innovation,
productivity and economic growth. Unfortunately, in Washington some
people see success and ask only one question: How can we tax it?
Unless Congress acts, tax collectors nationwide won’t have to wait
much longer to decide. The current ban on Internet access taxes,
double taxation, and taxes that discriminate against Internet purchases
will expire on November 1, 2007. To permanently extend the moratorium,
I joined Senators Ron Wyden (D-OR) and John McCain (R-AZ) in introducing
the bi-partisan Permanent Internet Tax Freedom Act.
The future of the Internet – and Americans’ ability to access the
Web – is on the line. Lawmakers must work together now to permanently
bar Internet access from being singled out as a new revenue source
by local and state jurisdictions. Given the national importance
of this network, there is no justification for such local micromanagement.
The power to tax is the power to destroy. The effect of new taxes
on the Internet would be felt by individuals and businesses alike:
higher costs and reduced access for lower-income Americans, decreases
in online commerce, diminished investment in new technology, and
disincentives for the deployment of new broadband infrastructure.
Failure to extend this ban could sharply limit the Internet’s otherwise
bright future. The time has come for politicians to stop using Internet
taxation as a political football, and give up the misguided notion
that we should preserve the “option” to tax the Internet in the
future. We must enact a permanent ban that removes the specter of
taxes on this economic engine once and for all.
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