Americans could face Internet tax

Katrina Smith
WSTM
Tuesday October 16, 2007

Congressman Jim Walsh today called on Congress to act immediately to permanently extend the current Internet tax moratorium set to expire on November 1, 2007.

"The Internet is growing in importance as a resource for businesses and consumers today," said Walsh. "In the last twenty years, it has revolutionized the way we communicate, the way our children learn, and the way we conduct business. Taxing Internet access will have a detrimental impact upon our economy and our quality of life, and Congressional leadership should quickly put forward a bill that permanently bans this detrimental tax."

According to a February-March 2007 survey by the Pew Internet & American Life Project, an initiative of the Pew Research Center, 71% of American adults regularly use the Internet, and usage by adults between the ages of 18 and 29 is as high as 87%.

Further, Internet usage is widespread across race, ethnicity, geography, household income, and educational attainment. Urban (73%), suburban (73%) and rural (60%) Americans all rely on Internet service.

If Congress allows the tax moratorium to expire on November 1st, Americans could face taxes of up to 20% for simply accessing the Internet. On Wednesday, the House Judiciary Committee passed a temporary short-term extension of the moratorium, refusing to consider legislation with bipartisan support that would enact a permanent ban.

Walsh is a co-sponsor of H.R. 743, the Permanent Internet Tax Freedom Act, which amends the Internet Tax Freedom Act to make permanent the ban on State taxation of Internet access and on multiple or discriminatory taxes on electronic commerce. The measure has 237 co-sponsors, suggesting the bill would have little trouble passing the full House if called for a vote.

"We rely upon the Internet today to find a job, a new place to live, or the best treatment for a loved one's illness," added Walsh. "Congress should not begin taxing this resource that improves our lives and contributes to our economy."