by James L. Gattuso
The Heritage Foundation
June 30, 2014
The long-standing moratorium on state and local Internet taxation should be made permanent. Since 1998, this moratorium has been renewed four times, and Internet access has expanded dramatically, changing the Web from a useful technological tool to an integral part of American society. While a tax on Internet service may be a tempting way for states to fill their coffers, it stands to significantly reduce Internet subscribership and impose harmful disincentives to online investors and entrepreneurs. Rather than allow the moratorium to expire on October 31, Congress should act to extend it indefinitely. The result will be greater certainty for investors, easier access for subscribers, and an Internet that continues to flourish.

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