Two Republican senators are seeking to make a ban on federal, state, and local taxes on Internet access permanent.
Sen. Kelly Ayotte (R-NH) and Sen. Dean Heller (R-NV) introduced the bill this morning that would extend the Internet Tax Freedom Act. The bill was originally enacted in 1998, but is due to expire in November 2014. The bill prohibits the collection of sales tax on Internet access and Internet-only services like email, but does not cover purchases made over the Internet. The measure as put forth by the two Republican senators would extend it indefinitely.
Sen. Ayotte had the following to say this morning in a statement regarding this measure:
“E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped...This legislation will provide certainty to the marketplace, helping the Internet continue to be a driving force for jobs and growth.”
In a similar statement, Sen. Heller added:
"The Internet Tax Freedom Act will ensure a longstanding federal policy that prevents the government from raising taxes and preserves the Internet as a tool for education and innovation."
Taxes levied within certain states on internet purchases are proving wildly unpopular, with many notable firms (such as Amazon) drawing flack for now having to collect the tax.