Internet Tax Freedom Act

Rex Halverson

Open Letter to Senators Dianne Feinstein & Barbara Boxer,

I understand that the extension of the moratorium on Internet access taxes will expire on December 11, and I urge you to pass H.R. 3086, the Permanent Internet Tax Freedom Act, to make the moratorium permanent before we reach that deadline.

I was actively involved in advocating for the passage of the original legislation back in 1998 shortly after stepping down as California Deputy State Controller-Taxation.

Since the passage of the Internet Tax Freedom Act in 1998, the vast majority of Americans have been able to enjoy tax-free access to the Internet to shop, keep in touch with friends, read the news, pay bills, fill out job applications, take classes, and conduct numerous other activities online.

As a result, online communications and the online economy have experienced remarkable growth, bringing about innovations and efficiencies that have benefitted all of us.

If you allow the moratorium to expire, the new tax burden, estimated at $14.7 billion annually, will stifle this engine of economic growth at a time when our country can least afford it. The new tax will also penalize the tens of millions of Americans who now spend much of their work time and playtime online and disproportionately impact the poor and those living on fixed incomes.

In addition, I urge you to resist attempts to tie H.R. 3086, which has rare bipartisan support, to the controversial Marketplace Fairness Act, which is nothing more than a tax grab by states and municipalities.

Again, I urge you to keep Americans’ Internet service bills from rising in just a few days. Pass H.R. 3086, the Permanent Internet Tax Freedom Act immediately!

Very truly yours,

Rex W. Halverson
Attorney at Law