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Washington, D.C., Sep 26, 2007 - Congressman J. Randy Forbes (VA-04) announced his support today for H.R. 743, the Permanent Internet Tax Freedom Act of 2007. Sponsored by Reps. Bob Goodlatte (VA-06) and Anna Eshoo (CA-14), the legislation would ensure that states or localities cannot tax Internet access services, regardless of the specific technology or location.

“Over the past decade, individual consumers and businesses have increasingly come to rely on the Internet. This legislation will ensure that states and local governments don’t exploit those who depend on the Internet with taxes, which would only serve to delay widespread broadband deployment,” Forbes said. “We need to continue to increase affordable Internet access for all Americans, particularly those in rural areas and those with low-incomes, and this bill will help to make certain that the cost to access the Internet does not rise due to additional taxes.”

There is currently a moratorium on Internet taxes and unfair taxes on electronic commerce under the Internet Tax Fairness Act of 1998; however, the moratorium is set to expire on November 1, 2007 after being extended twice in 2001 and 2004. This legislation would make the tax moratorium permanent, preventing possible Internet taxation from state and local jurisdictions.

This legislation will benefit both consumers and businesses by keeping Internet costs stable and encouraging continued investment in Internet technologies. This legislation will also help to continue to eliminate the “digital divide,” a term used to describe the gap between those with Internet access and those without, and enable more low-income households and minority-owned small businesses to afford, or continue to afford, Internet access. The Permanent Internet Tax Freedom Act does not impact an individual state’s ability to tax on-line sales.

The Internet Tax Freedom Act in currently under review by the House Judiciary Committee. A similar bill has been introduced by the Senate. For more information on Congressman Forbes’ work on technology issues, visit http://forbes.house.gov/issues/technology.htm.

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