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House Bans Internet Taxes, For Now


Location: Washington, DC

House Bans Internet Taxes, For Now

The House today voted to extend the Internet tax moratorium for an additional four years by a vote of 405-2. On November 1, 2007, the current Internet tax moratorium is scheduled to expire.

"While I'm pleased that Congress has extended the ban on Internet taxes, I'm disappointed that Democrats once again refused to make the ban permanent," stated Ranking Member Smith. "Across the nation, American consumers and businesses support a permanent ban on Internet taxes. But when given the opportunity to support a tax-free Internet, Democrats on the Judiciary Committee refused to listen."

"Rather than voting to permanently protect the public's tax-free access to the Internet, Judiciary Committee Democrats opposed the measure by a vote of 20-15," said Smith. "Even when given the opportunity to merely extend the ban for an additional eight years, Democrats again voted to oppose the extension. In fact, Democrats voted down any and all amendments that would extend the Internet tax ban beyond four years."

"A strong majority in Congress supports a permanent ban on Internet taxes," added Smith. "More than 240 Members have co-sponsored bills that would make the Internet tax ban permanent. A permanent moratorium has broad and bipartisan support."

"Permanently banning Internet taxes can only help spur economic growth and encourage progress," Smith continued. "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."

"Americans want and need a permanent ban on Internet access taxes," concluded Smith. "Unfortunately for most Americans, the Democrat leadership's love for the tax man has overcome their common sense."

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