President Bush signs into law a two-year extension of Internet tax moratorium, though it should have been permanent.


WASHINGTON — On Wednesday November 28th, President George W. Bush signed into law a measure to extend a ban on Internet-related taxes for two years. It renews a prohibition of taxes on the Internet that began in 1998, but expired on Oct. 21st.

Taxpayer advocate Grover Norquist, who heads Americans for Tax Reform (ATR), called the bill "a victory for all Americans who value technology and recognize that the Internet is a lynchpin of strength in America\’s modern economy."

Taxpayer groups that earlier sought a permanent extension of the Internet tax moratorium, were happy with the compromised two-year extension. “This bill represents a victory – however narrow – for taxpayers,” continued Norquist. “The Senate could have hit a home run by extending been a permanent extension of the Internet tax moratorium. But the big government spending lobbies in Washington and in state capitols across the country lobbied hard for no extension at all.”


Norquist concluded: “Internet taxes are simply a way for incompetent governors to swell their budgets with the hard-earned dollars of taxpayers and businesses that reside outside of their states. The practice is tantamount to taxation without representation, is unconstitutional, and is a would-be fraud widely recognized by Americans all across the country. Taxpayers have overwhelmingly voiced their opposition to these taxes time and time again, and we applaud the efforts of Representative Christopher Cox (R-Calif), Senators George Allen (R-Va) and Barbara Boxer (D-Calif), and especially the leadership of President Bush for keeping the Internet tax free for another two years.”