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Goodlatte & Eshoo Praise Enactment of Provision to Ban Internet Access Taxes Permanently

February 24, 2016
Washington, D.C. – House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Rep. Anna Eshoo (D-Calif.) praised the enactment of the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) conference report, which contained a provision permanently banning state taxation of Internet access. The legislation was originally introduced by Chairman Goodlatte and Rep. Eshoo, and was passed by the House as a stand-alone bill with overwhelming bipartisan support: Chairman Goodlatte: “This bipartisan legislation is about giving every American unfettered access to the Internet, which is the modern gateway to the American dream. Internet access drives innovation and, increasingly, the success of our economy.  A permanent ban on Internet access taxes will help prevent unreasonable cost increases that hurt consumers and slow job creation, innovation and the spread of knowledge. “I have worked for over decade to make this permanent ban a reality, and I am pleased that this day has finally come through a bipartisan, bicameral effort. The last thing the American people need is another tax on their doorstep.  I thank, and the American people thank, our allies and everyone else who was instrumental along the way to deliver this victory to hardworking Americans.” Congresswoman Eshoo: “The Internet is a tremendous economic engine for our country. To tax millions of Americans just to access the Internet would stifle the countless benefits and opportunities the Internet offers, including access to health care, education, commerce and communications tools. This law will ensure that Americans can permanently access all the powerful resources of the Internet, tax free.” Background: A moratorium on Internet access taxes was first put in place in 1998 with the passage of the Internet Tax Freedom Act. Since then, Congress has extended it multiple times with enormous bipartisan support. House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Rep. Anna Eshoo (D-Calif.) have long sought to make the ban permanent. The Permanent Internet Tax Freedom Act passed the House in December 2015, as part of the House conference report accompanying the Trade Facilitation and Trade Enforcement Act of 2015. Were the existing, temporary moratorium permitted to lapse, the potential tax burden on Americans would have been substantial. It is estimated that Internet access tax rates could be more than twice the average rate of all other goods and services. Low-income households could have paid 10 times as much as high-income households as a share of income. The current moratorium was set to lapse on October 1, 2016. A permanent ban ensures tax free Internet access for the millions of Americans who rely on this unique medium to conduct business, communicate, educate, and grow. Click here to learn more about PITFA.