Since 1998, the Internet Tax Freedom Act has protected consumers from incurring costs on Internet access from state government taxation. Americans for Tax urges Congress to continue this policy of protecting Americans from the burden of taxation, by supporting the Permanent Internet Tax Freedom Act (PITFA).
PITFA would permanently limit state government ability to tax Americans’ access to the Internet, eliminate grandfathered-in states taxes on Internet access, and prevent discriminatory taxation of e-commerce. This legislation will not only protect the consumer, but also allow Internet service providers to keep costs low and continue to expand ISP services and technology.
Unfortunately, PITFA may run the risk of having detrimental laws attached to it, due to its universal support and immediate nature. Now, with the expiration of Internet access taxes on the horizon, the temptation to attach the vastly disputed Marketplace Fairness Act to PIFTA may be on the mind of some Members. PIFTA would save consumers from taxation, while the MFA would incur out of state Internet sales tax on businesses. The attachment of MFA to PIFTA would certainly be a killer amendment. Dialectically opposed, passage of MFA with PIFTA is unacceptable.
Congress needs to immediately pass a PIFTA as a stand alone bill in order to protect the American consumer.
You can read Americans for Tax Reform’s letter here.