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Senators Hoping to Pass Permanent Ban on U.S. Internet Tax

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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."

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47 Comments Comment from the forums
  • dgingeri 01 February 2013 19:06
    This'll never get past the liberals.
    Reply
  • raidenfox123 01 February 2013 19:07
    We have enough taxes without having to slap on an internet usage tax. I'm glad these Senators are starting this early and hopefully all will be taken care of before the current act has expired.
    Reply
  • 01 February 2013 19:19
    We need Aaron Swartz, R.I.P. ='
    Reply
  • mrpijey 01 February 2013 19:26
    Maybe they will stop that tax and do what they did here in Sweden... they don't tax you for Internet, but they tax you for accessing streaming TV through Internet. So more tax money goes into their pockets anyway, the only thing that changed is the name of the tax...
    Reply
  • dfusco 01 February 2013 19:30
    Oh sure ANOTHER tax break for the RICH. I hope the Democrat Senernators put a hefty tax on the internetwebs that increases 1000% a year just so those rich BASTARDS don't use the innernettubes more than me.
    Reply
  • dimcorner 01 February 2013 19:40
    In my personal opinion I do think they should have a tax on internet sale of goods. It does help level the playing field against local stores who generally have a higher overhead. Either way if they do pass this the state is just going to obtain revenue through a different tax increase.
    Reply
  • teh_chem 01 February 2013 19:43
    Sounds good to me.

    Now I'm just waiting for internet access to be treated like a utility, and priced fairly and accordingly rather than charging users twice: once for a rated speed package, and then again for how much data they use (depending on if they go over an arbitrary amount of data).
    Reply
  • davewolfgang 01 February 2013 19:56
    10431621 said:
    Now I'm just waiting for internet access to be treated like a utility, and priced fairly and accordingly rather than charging users twice: once for a rated speed package, and then again for how much data they use (depending on if they go over an arbitrary amount of data).

    We absolutely, positively do NOT want internet access to be treated like a "utility" - EVER. Because then the government GETS to regulate it - that's what we are trying to stop and never let happen.

    Think about it - would you want your usage metered because some politician who gets elected in the future has a personal opinion that YOU don't need to use the internet, you should go outside and play....????
    Reply
  • teh_chem 01 February 2013 20:07
    davewolfgangWe absolutely, positively do NOT want internet access to be treated like a "utility" - EVER. Because then the government GETS to regulate it - that's what we are trying to stop and never let happen.Think about it - would you want your usage metered because some politician who gets elected in the future has a personal opinion that YOU don't need to use the internet, you should go outside and play....????Where did I say government-regulation? Just treated LIKE a utility where you pay for what you use, not for some made-up, unrealistic tiers of speed and bandwidth that have little relevance to actual usage.
    Reply
  • unksol 01 February 2013 20:14
    dimcornerIn my personal opinion I do think they should have a tax on internet sale of goods. It does help level the playing field against local stores who generally have a higher overhead. Either way if they do pass this the state is just going to obtain revenue through a different tax increase.
    This has nothing to do with sales tax. There is a strong push to do that and its already happening and legal. They won't stop that.

    This is about adding a tax to your internet bill, or taxing email. Like they do to your phone. And gas. And car. And cable. And..... Everything

    The goal its to not allow it so they can never use taxation to control internet access, email, charge multiple taxes on electronic sales etc. its to stop unfair INTERNET ONLY taxes. like charging Amazon a HIGHER tax to give local businesses advantages. It allows fair sales taxes
    Reply