Senators Hoping to Pass Permanent Ban on U.S. Internet Tax
Internet Tax Freedom Act due to expire in November 2014.
Senators are hoping to apply a permanent ban on an act that would see Americans paying tax to utilize the Internet.
Passed in 1998, the Internet Tax Freedom Act prevents federal, state and local governments from receiving sales taxes through internet access. The bill, however, is scheduled to expire during November 2014.
Republican Sens. Kelly Ayotte (N.H.) and Dean Heller (Nev.) introduced new legislation that aims to extend the ban indefinitely. The Permanent Internet Tax Freedom Act would put an end to governments applying taxes pertaining to internet access. It'll also prevent abuse related to taxes on online purchases by preventing "any multiple or discriminatory taxes" on a given purchase.
"Nevadans and every American should be able to access the Internet without penalties from the federal government," Heller said. "The Internet Tax Freedom Act will ensure a long-standing federal policy that prevents the government from raising taxes, and preserves the Internet as a tool for education and innovation."
"E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped," Ayotte added. "This legislation will provide certainty to the marketplace, helping the Internet continue to be a driving force for jobs and growth."