WASHINGTON, DC — The nation’s representatives often seem dedicated to two propositions: finding ways to spend money and finding ways to extract more money from the citizenry for spending. Through some miracle of politics and common sense, the internet has remained relatively unscathed in this regard – but past experience is no guarantee of future results. Two bills – S 156 and HR 743 – aim to keep the 1998 Internet Tax Freedom Act (ITFA) alive and well. Alas, although respectively in the Senate and in the House, neither bill is getting much attention.
Originally put in place to encourage the development and spread of internet technology, the ITFA declared a three-year moratorium on state and local internet access taxes, which were eagerly endorsed in some areas. The Act has been renewed several times since then but is set to expire in November of this year.
While some may feel secure that Congress will continue to extend this tax-protected status indefinitely, supporters of S 156 and HR 743 would prefer to have it in writing.
Supporters of the two bills project that access fees could raise the average internet subscriber’s bill by 20 – 25-percent; approximately $150 a year, inhibiting the ability of low income Americans, small businesses, and educational facilities with modest budgets from taking full advantage of the technology.
Tax proponents point out that maintaining a “Hands Off the Internet” policy has proven advantageous, nurturing rapid advances which they claim show that it has matured to a point where it no longer needs special protection. Nonetheless, those opposed to the a tax prefer to frame the argument internationally, observing that while domestic use has risen from 36-percent to more than 70-percent of the population since 1998, those numbers still fall far behind foreign governments that have taken the initiative and wired both homes and businesses with broadband or other forms of high-speed internet service.
The United States currently ranks 16th internationally for broadband deployment – eclipsed even by South Korea and Japan.
