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Extension of Internet Tax Moratorium Called For


May 24, 2007

Washington, D.C. ­ Senator Ted Stevens (R-Alaska), Vice Chairman of the Senate Commerce, Science, and Transportation Committee, on Wednesday called for the Internet Tax Moratorium to be extended. Senator Stevens' comments came during a Commerce Committee hearing entitled "Communications, Taxation, and Federalism."

The original Internet Tax Freedom Act was passed by Congress in 1998. The law prevents states and localities from taxing Internet access. Without Congressional action, the moratorium on state and local taxes will expire on November 1, 2007, at which time state and localities would be able to start taxing consumers' access to the Internet.

Senator Stevens said, "Thanks to the Internet, more goods and services are sold in Alaska every day, and Alaskans are able to market their goods to customers in the Lower 48. This is beneficial for small businesses. Access to the Internet has provided Alaskans with a means to get lower rates for hotel and air travel when they are planning trips outside the state. Additionally, broadband access has eliminated distance barriers for education and medicine."

"To ensure those benefits continue to reach as many Americans as possible, Congress should reduce any obstacles to Internet access," said Stevens. He said, "One way to do that is to prevent federal, state and local taxes that drive up costs for Internet access. During the period of the imposition of the Moratorium in 1998 and now, there has been tremendous investment, growth and innovation in broadband deployment and I hope this continues."

Stevens said he is pleased to see that this issue has bipartisan support in both the House and the Senate and he is working with his colleagues to extend the Moratorium which expires in November of this year.



Source of News:

Office of Sen. Ted Stevens


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Ketchikan, Alaska