Internet Tax Freedom Act Due To Expire In November

If the Senate does not act quickly, we may see our taxes increase in November.

The Internet Tax Freedom Act (ITFA) was signed by President Bill Clinton in 1998, and it placed a ban on internet taxation. It also included a moratorium on “multiple and discriminatory taxes”  on the purchase of internet goods. It was extended over the years three times, with the most recent extension in 2007 by President George Bush. It is due to expire November 1, 2020.

If a bill is not passed by Congress before November 1, your taxes may increase.

In September 2013, Representative Bob Goodlatte (R-Va) introduced the Permanent Internet Tax Freedom Act (H.R. 3086), which  permanently extends the ITFA. It passed the House on July 15, 2020.  The Senate version is called the Internet Tax Freedom Forever Act (S. 1431) and is co-sponsored by Sen Wyden (D-OR). Both bills have received bi-partisan support.

Now, all eyes are on the Senate.

However, some Democrats and Republicans in the Senate do not support Wyden’s bill and hope to combine The Marketplace Fairness Act, an online sales tax bill, with  the ITFA.

As we all know, the business landscape has changed over the years, and consumers have more shopping options than ever before. According to the Marketplace Fairness Coalition’s website, some businesses have an unfair advantage, and legislation is needed to “level the playing field.”

On one hand, businesses want equal opportunity and fairness in the marketplace. On the other hand, consumers shop for the best deal. With our sluggish economy, is now the best time to increase taxes? Could brick-and-mortar business owners approach their politicians about lowering or abolishing their state sales tax? Can state governments reduce their spending instead of raising taxes?

According to a recent Gallup poll, Congress’ approval rating is at 15%.  Americans are frustrated with bi-partisan bickering and politicians, who claim to empathize with struggling Americans then vote to raise taxes. Business owners also want the opportunity to compete with other businesses and create jobs in their communities. This would be an excellent opportunity for both parties to unite, keep corporate interests at arm’s length, and do what’s best for Americans.

What do you think? Do you think Congress should tax internet purchases?

See if your representatives support the ITFA at http://itfacoalition.org

Check out www.marketplacefairnessnow.org

Photo courtesy of Conservative Action Alerts.