2003 November – Commentary #07 – Taxpayers Fund Lobbying for Internet Access Tax

by Diane Katz

A bill to permanently bar some taxes on Internet access is stalled in the U.S. Senate, despite swift passage two months ago by the House. Predictably, states and localities, ever eager for more revenue, are vigorously fighting the measure. But unbeknownst to millions of taxpayers who benefit from an online oasis is the fact that taxpayers themselves are actually funding the lobbying effort for higher taxes.

Congress first issued a three-year tax moratorium on Internet access in 1998.  A two-year extension was approved in 2001, which expired last week.  The bill now before the Senate would establish a permanent ban against levying sales taxes on access services such as cable broadband and Digital Subscriber Lines.

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