On October 1, 2015, the Internet Tax Freedom Act’s temporary ban on taxation of Internet access is set to expire.
Enacted in 1998, the Internet Tax Freedom Act implemented a temporary ban preventing state and local governments from taxing Internet access. The ban specifically prohibits state and local governments from imposing sales taxes on monthly payments for internet service. Since the time it was enacted, Congress has voted four times to temporarily extend the ban. Now, in less than seven months, the ban is set to expire once again unless there is a renewal or permanent change to the law.
To address this, the bipartisan (PITFA) was introduced in the House of Representatives to permanently ensure citizens cannot be taxed for Internet access at the local and state level.
Opponents of the measure argue that it harms states by costing them billions in potential revenue, while others contend that the issue should be left to the discretion of state and local governments. Supporters of the bill believe that access to the Internet should never be taxed, since all Americans – students, small business owners, entrepreneurs, and individuals – benefit from tax-free Internet access.
Congressman Forbes is a supporter of the Permanent Internet Tax Freedom Act.
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