News and Commentary

Hey, Look, Congress Actually Did Something Not Stupid!

   DailyWire.com

For once, Congress did something that’s actually pretty good – they passed a law banning state and local Internet taxes.

The Daily Caller reports that the ban, which would require states to phase it out by 2020, is a part of the bipartisan Trade Facilitation and Trade Enforcement Act, which the Senate approved in a 75-20 vote. Only a few states have implemented the Internet tax: Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas and Wisconsin. The tax raises about $563 million a year in revenue.

Federal Communications Commissioner Ajit Pai lavished praise on the ban, via Forbes:

This is a great day for American consumers. The U.S. Senate passed the Permanent Internet Tax Freedom Act with a strong bipartisan vote. This confirms a national consensus that state and local taxes on Internet access should be taken off the table once and for all. These taxes would make (and in some places already have made) broadband more expensive, reducing consumers’ ability and willingness to get online. This, in turn, would reduce private sector investment in deploying broadband, especially in rural areas, and inhibit entrepreneurship. I hope the bill is enacted soon—Americans need and want the certainty that the digital world will be spared the taxman.

There were bipartisan voices in the Senate that were quite pleased with the bill. In a floor speech, Senate Majority Leader Mitch McConnell (R-KY) said, “Students use it to research school projects and papers. Entrepreneurs use it to help run their businesses and come up with new ideas. Families use it to manage their busy schedules and stay in touch with relatives. It’s important that they be able to do all of this without the worry of their Internet access being taxed.”

Sen. Ron Wyden (D-OR) said in a statement, “Most Americans pay $0 in taxes to connect to the Internet. And thanks to a bill that passed today, you will never have to pay taxes just to get online, or pay more taxes for goods and services just because they’re bought online.”

“Thanks to a bill that passed today, you will never have to pay taxes just to get online, or pay more taxes for goods and services just because they’re bought online.”

Sen. Ron Wyden

Kelly Phillips Erb at Forbes points out that a key distinction of the new law is it that only bans taxes on Internet access, but sales taxes can still be applicable to Internet sales. Regardless, Internet users should not have to worry about being taxed for simply using a tool that is absolutely necessary to stay connected in today’s globalized society.

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