Americans value unfettered access to the Internet.
Taxation of communications services is punitive and discriminatory. The average sales tax rate on voice services is 17 percent, and 12 percent on video services, while the average general sales tax rate is 7 percent.
Currently, states are barred from collecting these taxes by the bipartisan Internet Tax Moratorium, which has been renewed several times. But these taxes on the Internet will be imposed without Congressional action this year.
The Permanent Internet Tax Freedom Act would make this a problem of the past. At the very least, it would prevent targeted taxes on Internet access and disproportionate sales or other taxes on e-commerce.
The House easily passed the Permanent Internet Tax Freedom Act, but the Senate is holding it hostage in order to pass a tax increase on online and catalogue purchases.
We call on Congress to immediately pass the Permanent Internet Tax Moratorium, and quit holding it hostage.