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Public Statements

Dems Refuse to Make Internet Tax Ban Permanent


Location: Washington, DC

Dems Refuse to Make Internet Tax Ban Permanent

The Judiciary Committee today refused to make the Internet Tax Ban permanent by a vote of 20-15. Instead, the Committee passed a four year extension of the moratorium. Ranking Member Lamar Smith (R-TX) issued the following statement urging Congress to make the Internet Tax Ban permanent:

"The Internet is the single most important resource for businesses and consumers today," stated Ranking Member Smith. "In twenty years, it has revolutionized the way we communicate, the way our children learn and the way we conduct business."

"On November 1, 2007, the Internet tax moratorium will expire," said Smith. "If Congress doesn't act now, Americans could face taxes of up to 20 percent for simply accessing the Internet. That's the equivalent of taxing a shopper at the local mall 20 percent for just walking through the doors."

"A tax-free Internet is not just good for the American people, it's good for American businesses," added Smith. "High-tech and IP industries account for over half of all U.S. exports, represent 40 percent of our economic growth and employ nearly four percent of U.S. workers. Today's vote is a litmus test on whether this Congress will support the high tech and IP industries by making the Internet tax ban permanent."

"Today's vote simply delays taxation on Internet access with another extension," concluded Smith. "That just isn't good enough. Congress must act now and make the tax ban permanent."

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