Additional taxes could start showing up on YOUR Internet bill without urgent action by the Senate in support of a moratorium on Internet taxation. On November 1, 2003 the existing federal moratorium on taxation of Internet usage quietly expired. In response to this event, Senators Allen (R-VA) and Wyden (D-OR) have co-sponsored the Internet Tax Non-Discrimination Act (S. 150), a bipartisan effort to make permanent the freeze on Internet taxation laid out in the Internet Tax Freedom Act of 1998.

Take Action! Urge your Senators to support the Internet Tax Non-Discrimination Act! Nothing less than affordable access to the Internet for all Americans is at stake. To this end, TRAC has created a website at www.trac.org/nointernettax where consumers can contact their Senators to urge them to vote in support of the Act. With a floor vote on this issue expected within the next 10 days, the time is now for consumers to let their Senators know that we want taxes to end where the Internet begins.

Affordable Internet access is fast becoming as vital to American consumers as telephone service. By taxing Internet usage, it will become even more difficult for low-income consumers to gain access to the resources of the Internet, further widening the digital divide and leaving millions of Americans unconnected to an increasingly wired society. Without affordable Internet access, low-income consumers will find it increasingly difficult to research job opportunities, gain access to governmental resources, or keep in touch with friends and loved ones.

The tax moratorium proposed in the Act would cover all Internet services equally, ensuring equitable access to technologies such as dialup, cable modem, DSL, satellite, and wireless. Additionally, affordable Internet access has made possible the increase in household Internet penetration from 26.2% in 1998 to 64% in 2002 (Sources: Department of Commerce, Forrester Research). It is becoming increasingly clear that the recovery of the American economy will be driven in part by the increase in home broadband technologies. The Internet Tax Non-Discrimination Act will help ensure that this recovery will not fall victim to burdensome taxation.

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MEDIA CONTACT:

John Breyault, TRAC, johnb@trac.org, 202-263-2943

ABOUT TRAC:

The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.