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
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.
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