Tax-free Internet in Jeopardy, as Tax Moratorium Expires November 1st

The 1st of November 2022 is when this year's Internet tax moratorium is scheduled to expire. The initial Internet Tax Freedom Act of 1998 established the tax-free moratorium. Congress has extended twice. Legislation has been introduced into both houses this year, namely S. 56 and H.R. 743 by Sen. Ron Wyden, D-Ore. as well as Rep. Anna Eshoo, D-Cal. respectively, in order to make the ban to be permanent.
Many local and state officials have argued that the ban on Internet taxation is depriving of funding sources that they need for their programs. They believe that Internet tax revenues will help be able to provide the necessary funds for education, health care as well as public safety, among other essential services.

But, U.S. Census Bureau figures show that local and state government revenues grew by $1.4 trillion back in 1995, to $2.5 trillion in 2005 - a 78% rise, in contrast to inflation that grew by only 22% during the same time frame.

As reported by Fox News, Walter McCormick the President and CEO of the United States Telecom Association, in a recent article in The Hill, a daily Congressional newspaper, made the following comments concerning Internet taxation "Consider what an Internet tax is actually taxing. It is taxing access to information, to knowledge, to a voice in the democratic process, and to economic opportunity".

The people who support Internet taxation and lifting of the suspension include Senator. Michael Enzi, R-Wyoming. He believes that taxing online commerce and the Internet could lead to an rise of taxes on other items like property and income tax, to compensate for the increasing revenue loss from sales tax.

An estimate from 2003 by the Washington Post estimate put the total revenue from sales tax around $16 billion in 2003. This figure is definitely significantly higher and is likely to be increasing every year because more companies are turning to online-based solutions.

Lobbyists are currently advocating for the right to charge sales tax on Internet shopping, as well as to introduce new monthly taxes for DSL and other connection. Taxing downloads and emails has been proposed. In the event that an Internet taxes are lifted then this Information Superhighway could be transformed into an array of toll roads or clicks for the typical American Internet surfer.

Senator George Allen is a proponent of legislation permanent to prohibit taxes that affect the ability of consumers to use the Internet. He has introduced "The Internet Tax Nondiscrimination Act (S. 150) to prohibit permanently Internet taxation.
According Allen, according to Allen, "The growth of the Internet over the past 10 years has provided greater opportunity for everyone--from the largest multinational corporation to the smallest mom-and-pop start-up business. By giving more people access to knowledge and information, the personal computer and the Internet have empowered tens of millions of Americans as consumers and entrepreneurs, and as citizens in our free society."

There is one thing for certain that November 1st, 2022 is a significant time for Internet customers and companies that sell online. In reality, the future of American economy as well as our Internet experiences we have today depend very heavily on this election.

Visit: https://internettaxconnection.com/

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