Internet Tax Freedom Act Progress Threatened

10:26 AM June 16, 2014

The Hill recently published a thoughtful  article by its contributor George S. Ford, Chief Economist of the Phoenix Center for Advanced Legal & Economic Public Policy Studies, about the Internet Tax Freedom Act (ITFA) being threatened in Congress:  Congressional gridlock threatens to tax the Internet

 

In his article Mr. Ford reminds us if the Congress fails to extend the ITFA, as it has done three times since 1998, there will be an imposition of new state and local taxes on access to the internet.  Among the consequences of a Congressional failure to extend the act will be a reduction in the economic and social benefits of broadband connectivity.

 

One of WIPP's basic principles, which is spelled out in its Economic Blueprint, is that of supporting efforts that lead to wireless affordability.  Today, already wireless services are taxed at over double the average sales tax. Between 2007 and 2010 wireless taxes increased at a rate of three times the amount of any other goods or services. Considering that wireless access is a business necessity for small businesses, WIPP believes Congress should enact legislation that prevents these taxes from increasing at unsustainable rates. WIPP supports efforts to prevent any additional taxes on wireless services.

 

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