HTTP Supports Permanent Internet Tax Freedom Act

For nearly a decade, the Internet Tax Moratorium has prevented state and local governments from imposing taxes on Internet access services.  As this policy is due to expire this November, we support its extension through the Permanent Internet Tax Freedom Act, S.156/H.R.743.  As this legislation comes before the House and Senate in the coming weeks, we urge you to support its passage.

If the moratorium expires, local and state governments could view Internet access as a target for more tax revenue.  As a result, the average consumer’s bills would rise, thus discouraging broadband adoption and other service upgrades.  By impeding consumer demand, these taxes would also inhibit fiber deployment and investment in new technologies.  Lower income Americans would be left behind without an affordable broadband option.

On the other hand, a permanent extension of the tax moratorium will broaden the reach of technology and help eliminate the Digital Divide.  Investment and innovation in wireless technology can continue and consumers will reap the benefits.  Regardless of one’s income, race or neighborhood, an entrepreneur can start a business with merely an Internet connection.  These small businesses not only serve consumers, but also create jobs and spur economic development.

In view of the serious implications of allowing the Internet Moratorium to expire, and its deleterious impact on the Hispanic community, HTTP urges Congress to pass the Permanent Internet Tax Freedom Act and expand upon the Internet Tax Moratorium’s benefits for the Hispanic community and.all Americans.