The United States House of Representatives today passed the Permanent Internet Tax Freedom Act, which seeks to make the temporary Internet tax moratorium passed in 1998 the permanent law of the land.
The Act, which was co-sponsored by three Republican members of Alabama’s Congressional delegation (Bachus, Brooks and Aderholt), permanently bans state and local governments from taxing Internet access, or imposing discriminatory Internet-specific taxes on items like email or bandwidth. Current law temporarily bans Internet taxes until November 1, 2014.
The bill does not, however, address the Internet sales tax, which has been a hotly debated issue that has often been split down generational, rather than partisan lines.
“The Internet has been a tremendous low-cost, economic boon and informational resource for America and the world,” said Rep. Mo Brooks (R-AL05). “The Permanent Internet Tax Freedom Act protects the Internet by thwarting efforts to tax it to the point that it becomes cost prohibitive. The Act also ensures Americans can continue to conduct business and access the Internet free from discriminatory taxes, which in turn gives Internet-related companies the certainty they need to grow and create needed jobs.”
National conservative groups in Washington, D.C. pushed hard for the legislation this year, making it one of their “key votes” used to create their congressional scorecards.
“FreedomWorks recognizes the transformative power of the internet to facilitate commerce and the free flow of information,” said FreedomWorks president Matt Kibbe. “Permitting taxation of the internet unjustly and discriminatorily burdens internet businesses and allows government new power to restrict the freedom of information.”
The bill now goes to the Senate. If they don’t act by Nov. 1, many Americans could see a tax increase, according to the bill’s sponsor, Rep. Bob Goodlatte, a Virginia Republican.
“This legislation prevents a surprise tax hike on Americans’ critical services this fall,” he said. “The last thing Americans need is another bill on their doorsteps.”.
Brooks added that he believes the legislation is an important step toward protecting one of the few bright spots in the American economy.
“President Ronald Reagan once noted that the ‘Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it,’” Brooks said. “I believe it is important to stop Internet taxes before the Internet, as President Reagan warned, becomes so heavily taxed that it stops moving.”
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