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VOIP

In recent years, advances in technology have led to more and more innovations that affect our day-to-day lives. One of these newer innovations - one that is fundamentally changing the communications industry -- is Voice over Internet Protocol, or VoIP. This technology allows a user to make telephone calls using a tax-free broadband Internet connection rather than a regular-or anaglog-telephone line.

VoIP offers great benefits to both businesses and home consumers. Michael Powell, Chairman of the Federal Communications Commission has stated that VoIP promises "the most important shift in the entire history of modern communications since the invention of the telephone." It is because of these benefits that I believe prompt action is necessary that will promote, rather than undermine, the development of this technology.

Recently, I held a hearing in the House Judiciary Subcommittee on Commercial and Administrative Law, of which I am Chairman, to discuss the appropriate level of regulation for VoIP. Telephone service has been heavily regulated and taxed over the last 100 years, and I have serious reservations about imposing those same burdens to this new technology.

On September 17, 2003, the House of Representatives unanimously passed H.R. 49, the Internet Tax Nondiscrimination Act. This legislation, which I fought for in committee and on the House floor, permanently bans taxes on accessing the Internet. Language included in this bill also banned taxing VoIP. Unfortunately, the Senate passed legislation that only included a temporary ban and does not protect VoIP. I fully support the legislation passed by the House and will fight to enact that version.

While there are some concerns about possible revenue impacts on local, state and federal governments, I believe innovation should not be hindered by agencies that already overtax Americans.

For more insight into this important issue, I encourage you to click on the link below for a recent editorial from the Deseret Morning News about VoIP.

Deseret News Editorial: Don't Tax Internet Phone Calls

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