CCAGW to Senate: Join the House and Protect Americans from Internet Taxes | Council For Citizens Against Government Waste

CCAGW to Senate: Join the House and Protect Americans from Internet Taxes

Press Release

For Immediate Release Contact: Alexandra Booze 202-467-5318
July 15, 2014  

(Washington, D.C.) – Today, Council for Citizens Against Government Waste (CCAGW) President Tom Schatz praised the members of Congress who supported H.R. 3086, the Permanent Internet Tax Freedom Act, which passed the House by voice vote.  The legislation will make permanent the Internet tax moratorium that was first established in the Internet Tax Freedom Act (ITFA) of 1998 by prohibiting the imposition of Internet access taxes at the federal, state and local level.  The current moratorium will expire on November 1, 2014.  CCAGW urges the Senate to pass this crucial legislation before the August congressional recess.

Since 1992, when the general public first gained access to the World Wide Web, the Internet has been mostly free from government regulation and taxation.  While the Internet tax moratorium prohibits the imposition of access taxes on the nation’s 274 million users, if the ban is not made permanent, many households with multiple devices such as Smartphones and tablets, as well as those who access the Internet through traditional wire line methods, could be subject to $50 to $70 annually in additional taxes.

“The Internet has become a vital contributor to the global economy; keeping access tax-free is essential for continued economic growth,” said CCAGW President Tom Schatz.  “CCAGW applauds the strong bipartisan House vote to protect taxpayers from unnecessary, discriminatory, and burdensome fees and taxes on Internet services, which would stifle an already struggling economy and discourage many families and individuals from using the Internet.  We urge the Senate to agree with the House and vote to permanently ban such Internet taxes.”

On July 14, 2014 CCAGW sent a letter to the House urging members to support H.R. 3086, which reads in part as follows:    

“One of the many problems with taxing the Internet is that when something becomes more costly, people will engage in less of it.  Today, nearly every business enterprise uses the Internet to communicate with customers and share information about its goods and services.  The Internet is also used by job seekers, as most employers now require prospective employees to fill in their job applications online; households with children who are increasingly required to perform schoolwork online; individuals who shop online; and, people who connect with friends electronically. 

“Protecting users of the Internet from onerous new taxes is critical to continued job creation, economic growth and social interaction.  With 228 cosponsors, H.R. 3086 has wide bipartisan support among your colleagues.  I urge you to vote in favor of this legislation in order to ensure that new taxes on the Internet are not imposed on November 2, 2014.  All votes pertaining to the Permanent Internet Tax Freedom Act will be among those considered in CCAGW’s 2014 Congressional Ratings.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.